Ordinary Income Tax is a tax on income at rates published by the IRS. Ordinary income tax is generally significantly higher than capital gains tax.
Offering Documents are the documents that are involved with the sale of a startup’s securities (see Private Placement). These documents include various agreements specifying the rights of all parties involved, the risks associated with the sale, an agreement for the […]
An Option Plan is a plan created by a company to issue stock options to its employees and service providers.
An Option Pool is a group of shares reserved by the company for long-term compensation to management and employees.
An Offering Memorandum is a legal document drafted by startups to provide details of an investment round to potential investors. See Private Placement Memorandum (PPM).
Operating Cash Flow is a company’s cash flow from operating the business, and not from investments or raising capital. It is calculated as net operating income plus depreciation.