Financing Contingency

Common stock represents part ownership in an incorporated entity. A company’s common stock can be found under the “stockholders’ equity” section on the company’s balance sheet. Common stock is a US term, in the UK we would say “Share capital”.

Hostile business takeovers occur when one business attempts to seize control of another by purchasing controlling equity directly from shareholders. Hostile takeovers can also occur when a company infiltrates the target company’s management class and ushers in an acquisition deal.

Seed money refers to the funds a startup raises to launch its product or business. It usually comes from friends and family, co-founders, or angel investors in exchange for equity.