Option Pool

A reserved number of shares set aside for future issuance to employees, advisors, and other service providers as part of an equity incentive plan.

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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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Unilateral Contract

A unilateral contract is a type of contract in which one party promises payment to another in exchange for a specific act.

Financial Ratios

Financial ratios are numerical tools that compare the relationships between different figures on a company’s financial statement. There are dozens of different financial ratios that analysts and investors can use to determine the efficacy of an investment and the performance of a business.

Rate Of Return Formula

The rate of return formula calculates the total net profit an investor makes from an asset. It is calculated and shown as a percentage of the total initial cost of the asset. Essentially, you are calculating the percentage change from the beginning to the end of an investment.