Shares Glossary

Browse 10 shares terms defined in plain English, from the cultural dictionary of computing.

10 Shares Terms

Dual-Class Shares
A share structure where different classes carry different voting rights, often letting founders retain outsized control relative to economic ownership. It is...
Equity
Ownership in a company, usually represented by shares, options, or similar instruments that participate in its upside and governance. In startups, equity is...
IPO Lockup
The period after an IPO during which insiders and certain shareholders are restricted from selling shares. Lockups aim to prevent immediate sell pressure and...
Liquidity
The ability to turn ownership, assets, or investments into cash without major friction or delay. In startup life, liquidity usually refers to whether employees...
Liquidity Event
An event such as an IPO, acquisition, or significant secondary sale that allows shareholders to convert part of their paper ownership into cash. Liquidity...
Primary Market
The market where new securities are issued and sold directly by the company or issuer, as opposed to secondary trading between existing holders. In startup...
Right of First Refusal
A contractual right giving a party the option to match an offer before an asset or share can be sold to someone else. In startups, rights of first refusal...
ROFR
Short for right of first refusal, the contractual right to match another buyer's offer before a sale proceeds. It is a common term in shareholder agreements...
Secondary Market
The market where existing shares or securities trade between holders rather than being newly issued by the company. In startup contexts, secondary markets give...
Secondary Sale
A transaction where existing shareholders sell shares to another investor instead of the company issuing new shares. Secondary sales can provide liquidity...

Related Topics