The substance of the investment (and a bunch of the power) is in the details!
REPORTING AND COMMUNICATION
REPORTING AND COMMUNICATION
Predetermined form and schedule for reporting and communicating with investors or other stakeholders. This outlines rights investors have to information about the company
SHARE
SHARE
A percentage or unit of ownership in a company or mutual fund; usually issued to the shareholder in the form of a certificate
DIVIDEND
DIVIDEND
A return paid regularly (typically quarterly) to shareholders out of a company’s profits or reserve
PREMIUM
PREMIUM
A return in addition to the basic value, due to additional factors such as the investor’s willingness to assume risk
ROYALTIES
ROYALTIES
Return based on revenue or cash flow tied to a particular product or asset in the company
TERMINATION CLAUSES
TERMINATION CLAUSES
A section of a contract that describes what will happen if the contract ends early or in default
VOTING RIGHTS
VOTING RIGHTS
The right to vote on or veto corporate or company policy and who will make up the board of directors
WARRANT
WARRANT
The right but not the obligation to buy or sell a share or security at a certain date before expiration
ESCROW
ESCROW
Money held by a third party on behalf of transacting parties
MATURITY DATE
MATURITY DATE
The final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid
TERM LENGTH
TERM LENGTH
The timing for the duration of an investment, and how long the terms are expected to be upheld
ANNUITIES
ANNUITIES
A stream of payments that comes from a structured payout at some future time
COUPON
COUPON
The annual interest rate paid on a bond, expressed as a percentage of the face value
FUTURES
FUTURES
Agreements to buy or sell a specific amount of a commodity, currency, or a financial instrument at a particular price on a predetermined future date
INTEREST RATE
INTEREST RATE
Percentage of a loan that is charged to the recipient of the loan for the use of the money
OPTIONS (PUTS AND CALLS)
OPTIONS (PUTS AND CALLS)
The rights to buy or sell property that is granted in exchange for terms that are agreed upon. A call allows the owner to buy at a certain price. A put option allows the owner to sell at a certain price
ANTIDILUTION CLAUSE
ANTIDILUTION CLAUSE
A provision in an option or convertible security that protects an investor from equity dilution resulting from later issues of stock at a lower price than the investor originally paid
LIQUIDATION PREFERENCE
LIQUIDATION PREFERENCE
Determines who gets payed out first and how much when a company is liquidated. Used to allow venture capitalists to claim profits or get initial investment back before those who invested later
TAG ALONG RIGHTS
TAG ALONG RIGHTS
Pre-negotiated rights that allow minority shareholder to sell his/her share if a majority shareholder is selling their share. Majority shareholders are often able to facilitate what would otherwise be a difficult sale
DIVIDENDS
DIVIDENDS
A return paid regularly (typically quarterly) to shareholders out of a company’s profits or reserve
PREMIUM
PREMIUM
A return in addition to the basic value, due to additional factors such as the investor’s willingness to assume risk
VESTING
VESTING
Process of acquiring rights gradually over time. The rights could include benefits such as pension contributions or equity participation, such as stock options
OTHER SECTION CATEGORIES





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