Types of Preferred and Common Stock

Types of Common Stock:

• Founder’s Stock (owned outright from formation, no vesting)
• Restricted Stock (same as founder’s, but with vesting)
• Option Pool (usually for incentive plans)

Types of Preferred Stock

• Convertible Preferred
• Participating Preferred

Types of Stock Options

• Incentive Stock Options (ISO)
• Non-qualified Stock Options (NSO)

NOTE on Preferred Stock

Preferred Stock is different than stock market, as it includes:

• Conversion Rights (go from Preferred to Common)
• Liquidation Preferences
• Dividends
• Antidilution Rights
• Redemption Rights
• Protection Provisions
• and many more

External Link

Comparison of ISO and NSO

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