The liquidation preference is the amount that must be paid to the preferred stock holders before distributions may be made to common stock holders. The liquidation preference is payable on either a liquidation of the company, asset sale, merger, consolidation or any other reorganization resulting in the change of control
About the Site
Startup Lawyer is a website for participants of the startup ecosystem. Articles are generally legal in nature but topics may include issues and current events as they relate to the startup ecosystem.