Types of Preferred and Common Stock
Posted on 02. Oct, 2008 by squareroots in Term Sheets
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
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