Common Stock

An essential overview of 409A valuations, explaining how they set stock option prices and protect startups and employees from IRS tax penalties.

Preferred stock grants investors payment priority over founders. Understand the mechanics of liquidation preferences, control rights, and the difference between common and preferred equity.

Fair Market Value determines the price of your common stock for tax purposes. It is critical for issuing options and differs significantly from your venture capital valuation.

Common stock is the standard unit of ownership for founders and employees. It offers voting rights but holds lower financial priority than preferred stock during a company exit.