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What Kind Of Stocks Would You Issue For A Startup? |
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Answer» A startup TYPICALLY has more risk than a well-established firm. The kind of stocks that ONE would issue for a startup would be those that protect the downside of equity holders while GIVING them upside. Hence the STOCK issued may be a combination of COMMON stock, preferred stock and debt notes with warrants (options to buy stock). A startup typically has more risk than a well-established firm. The kind of stocks that one would issue for a startup would be those that protect the downside of equity holders while giving them upside. Hence the stock issued may be a combination of common stock, preferred stock and debt notes with warrants (options to buy stock). |
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