Glossary

Liquidation Preference

A term in preferred stock that specifies the order in which proceeds are distributed to shareholders in the event of a liquidation, dissolution, or sale of the company (i.e., when the company is sold or closed.)
This glossary provides an overview of some key legal terms for startups. It's essential to consult with a legal professional to ensure a comprehensive understanding of these terms and their implications for your specific situation.

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