Glossary

Convertible Shares

Convertible preferred shares, or convertible shares, is a form of hybrid investment that is most commonly offered to venture capitalists that invest in startup businesses. Also known as convertible stock in the US market.
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This glossary provides an overview of some key legal terms for startups. It's essential to consult with a legal professional to ensure a comprehensive understanding of these terms and their implications for your specific situation.

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A reduction in the ownership percentage of a shareholder due to the issuance of new shares in the company. As new shares are issued, the proportion of the company each shareholder owns decreases, potentially affecting their control, influence, and value of their investment.
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