Sep 1, 2013

Common Stock Vs Preferred Stock - STARTUP FUNDAS


Here's How Facebook Common stock Look Like
Here's How Facebook Common stock Look Like

Generally there are two particular types of stocks in the company, Common Stock & Preferred Stock. As a founder in the company you will have a common stock. Investors probably don't want to buy a common stock until and unless the company has high valuations. Here's the difference between Common Stock Vs Preferred stock:

Common Stock:
  • Normally issued to Employees and Founders of the company.
  • Early on cost less than preferred stock.
  • Normally subject to vesting
Preferred Stock:
  • Normally issued to investors in the company.
  • Early on priced higher than the common stock
  • Not normally subject to vesting

Source : Rockhealth



Tags: Preferred stock, common stock, Common Stock Vs Preferred Stock - STARTUP FUNDAS,

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