25/07/2022 Accounting - Finance
Founders stock refers to the equity that is given to the early founders of an organization. This type of stock differs
in a few important ways from common stock sold in the secondary market. Key differences are that founders stock
can only be issued at face value, and it comes with a vesting schedule.Founders stock is not a legal term per se.
It’s simply a term used to describe the shares issued to the early investors or participants
in a company. They could be investors or any other individual who helped transform the idea of a company into reality.
Consequently, a firm’s bylaws may not even include the term.
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