In a startup financing, protective provisions provide investors with the ability to block the company from taking certain actions without the investors' approval, including actions like selling the company, amending the company's governing documents, borrowing money, and more.
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Common and Preferred Stock: What's the Difference?
Common stock does not sound exciting. Preferred stock does. First-time founders are looking for excitement—especially when it comes to their millions of initial shares—and so they’re often surprised to hear that they’ll be receiving common, rather than preferred stock when the startup is incorporated.
