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Understanding an Equity Offer (virginia.edu)
4 points by zuhayeer on Oct 3, 2021 | hide | past | favorite | 1 comment


Liquidity preference is the oft-overlooked feature here. People commonly think that because they have 1% of the shares, they will get 1% of the sales price, and that's rarely the case. Even if the company shares with you the liquidity preference of all of their current investors, future investors may negotiate for a favorable one, sometimes making your shares basically useless.




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