Pre-emptive rights (or rights of first refusal) protect preferred stockholders against dilution from subsequent equity sales by a venture capital- or private equity-backed company. Such a right [...]
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Some of the types of preferred stock discussed in “Preferred Stock Demystified” – my previous series of blog posts on this topic – are convertible into shares of common stock. For example, a [...]
Preferred stock provides flexibility in structuring investments. It can furnish various dividend and participation rights (such as rights to participate with common stock in proceeds from company [...]
