When private companies hold financing rounds with venture capital and other professional investors, these investors acquire convertible preferred stock from the company. The “convertible” or “conversion” feature of the preferred stock is fundamental to many of the rights, privileges and preferences granted to the preferred stock investors.
So what is the convertible feature of convertible preferred stock? Read on.
When private companies hold financing rounds with venture capital and other professional investors, these investors acquire convertible preferred stock from the company. The “convertible” or “conversion” feature of the preferred stock is fundamental to many of the rights, privileges and preferences granted to the preferred stock investors.
So what is the convertible feature of convertible preferred stock? Read on.
