EquityZen Knowledge Center

EquityZen has curated this list of quality resources for secondary investors, shareholders and company representatives.
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Terms Tagged with Equity

Fully Diluted Shares Outstanding :The total number of shares that would be outstanding if all possible sources of conversion (convertible bonds and stock options) were exercised.
Golden Handcuffs :Financial incentives that discourage founders and early employees from leaving a company before certain dates or milestones. Often found in an acquisition scenario, an example would be a cash or equity payout by an acquiring company that is earned over time.
Investment Syndicate :A group of investors that agree to participate in an investment round of funding for a company.
Recapitalization :The reorganization of a company's capital structure.
Reverse dilution :When stock is returned to a company by departed employees whose stock has not yet vested.
Rights of Co-Sale With Founders :A clause allowing venture capital investors to sell shares in a company at the same time that the founders decide to sell.
Shares Outstanding :Refers to a company's stock currently held by all of its shareholders, including shares held by institutional investors and restricted shares owned by a company's executives. This number is used to calculate key metrics such as a company's market capitalization, earnings per share, and cash flow per share.
Stock Option :A right to purchase or sell a share of stock at a specific price within a specified period of time. Stock options are often used as long term incentive compensation for management and employees at high-growth companies.
Tag-Along Right :The right of a minority investor to receive the same benefits as a majority investor. This often applies to a sale of securities by investors and is also known as co-sale right.
Washout Round :A round of financing where previous investors, the founders, and management suffer significant dilution. The new investor in a washout round will typically gain majority ownership and control of the company.
Write-Off :A decrease in the reported value of an asset or company.
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