by TheBusinessProfessor | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
Steps in the Incorporation ProcessIncorporating and organizing a startup generally requires the following steps: Reservation of Corporate NamePrior to filing the articles of incorporation, you should research to see if the desired corporate name is available. If the...
by TheBusinessProfessor | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
What is Price Based Anti-dilution Formula?Investors in startup companies generally require preferred shares in exchange for their investment. Preferred shares have numerous characteristics that protect the rights of the investor. One of the most prominent protection...
by TheBusinessProfessor | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
Should I Grant Stock or Options?Companies, particularly startup companies, use stock and stock options to incentivize company employees. This is particularly useful as startups that cannot otherwise afford to adequately compensate employees. This can be a huge...
by TheBusinessProfessor | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
What is a Cap Table?A capitalization table, or cap table for short, is an ordered list of your companies outstanding securities, including stock, options, warrants, and convertible notes, and who owns them. The cap table has several important roles. Entrepreneurs use...
by TheBusinessProfessor | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
What is an Accelerated Vesting Clause?Often companies use stock to compensate employees for their services. This allows the company to save cash, and it incentivizes the employee to work toward company success (as she is an owners). To make certain the employees stay...
by TheBusinessProfessor | Feb 23, 2025 | Business Transactions, Antitrust, & Securities Law
What are the Legal Requirements for Issuing Stock?Companies generally issue securities to finance company operations. A security is defined by federal law and general includes any debt instrument, stock, or stock equivalent (such as options, warrants, ownership units,...
