Engagement Letter

A term in preferred stock that specifies the order in which proceeds are distributed to shareholders in the event of a liquidation, dissolution, or sale of the company (i.e., when the company is sold or closed.)

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.

A business model canvas is a planning tool typically consisting of a single page that outlines the essential building blocks necessary to bring a business (or a product or service) to market.