FCA Regulations and Crowdfunding Overview
4 Questions
2 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What makes preferred shares generally worth more than common stock before conversion?

  • Convertible feature
  • Liquidation preference (correct)
  • Lower risk exposure
  • Higher voting rights

    • How does the post-money valuation affect the liquidation preference in this context?

  • It increases the liquidation preference for preferred shareholders (correct)
  • It has no impact on the liquidation preference
  • It decreases the value of common stock
  • It reduces the liquidation preference for preferred shareholders

    • What happens if the sale price is exactly $36 million in the scenario?

  • $6 million goes to Series A and $30 million goes to Series B (correct)
  • $36 million goes to common shareholders
  • $36 million goes to Series B only
  • $36 million goes to Series A only

    • What role does participation rights play in the calculation of proceeds for investors in this scenario?

    <p>It affects how much each investor group receives in a sale</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser