. Liquidation Preferences
Liquidation Preference - This is a preference that would guarantee the investors had a right to prepayment first in the case of an exit, such as in a sale or merger, or even bankruptcy. For example, a 1x liquidation preference means investors get paid back at least their principal amount before any residual proceeds get passed on to common shareholders. Good liquidation preferences are a matter of fair balance between risk and reward between investors and founders.readmorehttps://finxl.in/financial-analyst-online-classes-courses-training.htmlhttps://finxl.in/financial-analyst-online-classes-courses-training.html