Quiz
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
L
Liquidation Preference Overhang
The amount by which the liquidation preference of venture capital firms and other investors in a company exceeds the estimated value of the company under a possible sale. This means that common stock, stock grants, and stock options held by the company's employees are worthless. For more on this topic, see an article from Morse Barnes-Brown Pendleton about a bonus/carveout plan that companies may develop to continue to motivate and retain employees.
Return to list Register Now

Try the new myStockOptions.com Glossary App! Now available for Android and iOS.

Get it on Google Play
The content is provided as an educational resource.
myStockOptions.com shall not be liable for any errors or delays in the content, or any actions taken in reliance thereon.
Copyright © 2000-2018 myStockPlan.com, Inc. U.S. Patent 7,353,200.
Contact editors@mystockoptions.com for licensing information