Common Stock Equivalents definition: Copy, customize, and use instantly
Introduction
The term "Common Stock Equivalents" refers to securities, instruments, or rights that can be converted into or provide similar economic benefits as common stock. These include stock options, convertible securities, warrants, restricted stock units, and other financial instruments that may affect the fully diluted share count of a company.
Below are various examples of how "Common Stock Equivalents" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Common Stock Equivalents" as convertible securities
This definition ties "Common Stock Equivalents" to convertible financial instruments.
"Common Stock Equivalents" means any securities convertible into or exchangeable for common stock, including convertible notes and preferred stock.
Definition of "Common Stock Equivalents" as stock options and warrants
This definition connects "Common Stock Equivalents" to rights to purchase common stock.
"Common Stock Equivalents" refers to stock options, warrants, or other instruments granting rights to acquire common shares.
Definition of "Common Stock Equivalents" as restricted stock units
This definition links "Common Stock Equivalents" to unvested stock awards.
"Common Stock Equivalents" means restricted stock units or other share-based compensation awards that, upon vesting, convert into common shares.
Definition of "Common Stock Equivalents" as performance-based equity awards
This definition applies "Common Stock Equivalents" to performance-based stock grants.
"Common Stock Equivalents" refers to equity awards or shares that vest based on company performance metrics or milestones.
Definition of "Common Stock Equivalents" as contingent issuances
This definition ties "Common Stock Equivalents" to conditional stock issuance.
"Common Stock Equivalents" means any rights or instruments that, upon satisfaction of certain conditions, result in the issuance of common stock.
Definition of "Common Stock Equivalents" as convertible debt
This definition connects "Common Stock Equivalents" to debt securities.
"Common Stock Equivalents" refers to debt instruments convertible into common stock, including convertible bonds and debentures.
Definition of "Common Stock Equivalents" as preferred stock with conversion rights
This definition links "Common Stock Equivalents" to preferred stock.
"Common Stock Equivalents" means preferred shares that are convertible into common stock under specified terms.
Definition of "Common Stock Equivalents" as employee stock options
This definition applies "Common Stock Equivalents" to employee compensation.
"Common Stock Equivalents" refers to stock options granted to employees that can be exercised for common shares.
Definition of "Common Stock Equivalents" as equity-linked derivatives
This definition ties "Common Stock Equivalents" to derivative securities.
"Common Stock Equivalents" means options, swaps, or other derivative instruments with value linked to common stock.
Definition of "Common Stock Equivalents" as share purchase rights
This definition connects "Common Stock Equivalents" to rights offerings.
"Common Stock Equivalents" refers to rights issued to shareholders allowing them to purchase additional common shares at a set price.
Definition of "Common Stock Equivalents" as stock appreciation rights
This definition links "Common Stock Equivalents" to stock price growth.
"Common Stock Equivalents" means stock appreciation rights providing the right to receive gains based on common stock performance.
Definition of "Common Stock Equivalents" as convertible promissory notes
This definition applies "Common Stock Equivalents" to startup financing.
"Common Stock Equivalents" refers to convertible promissory notes that can be exchanged for common stock upon conversion events.
Definition of "Common Stock Equivalents" as earn-out shares
This definition ties "Common Stock Equivalents" to acquisition deals.
"Common Stock Equivalents" means shares issued upon meeting post-acquisition financial or operational milestones.
Definition of "Common Stock Equivalents" as phantom stock
This definition connects "Common Stock Equivalents" to synthetic stock.
"Common Stock Equivalents" refers to phantom stock or similar agreements that track common stock performance without actual share issuance.
Definition of "Common Stock Equivalents" as participation rights
This definition links "Common Stock Equivalents" to investor privileges.
"Common Stock Equivalents" means contractual rights allowing investors to participate in future common stock issuances.
Definition of "Common Stock Equivalents" as founder’s shares with vesting
This definition applies "Common Stock Equivalents" to early-stage equity.
"Common Stock Equivalents" refers to founder shares subject to vesting schedules and potential forfeiture.
Definition of "Common Stock Equivalents" as class b shares with conversion
This definition ties "Common Stock Equivalents" to dual-class stock structures.
"Common Stock Equivalents" means non-voting or limited-voting shares that convert into common stock under specific terms.
Definition of "Common Stock Equivalents" as deferred share units
This definition connects "Common Stock Equivalents" to deferred compensation.
"Common Stock Equivalents" refers to deferred share units (DSUs) that convert into common shares at a future date.
Definition of "Common Stock Equivalents" as exit event-based stock rights
This definition links "Common Stock Equivalents" to liquidity events.
"Common Stock Equivalents" means rights that convert into common shares upon an IPO, merger, or acquisition.
Definition of "Common Stock Equivalents" as anti-dilution protection instruments
This definition applies "Common Stock Equivalents" to investor protections.
"Common Stock Equivalents" refers to instruments that adjust conversion ratios to prevent dilution from future stock issuances.
Definition of "Common Stock Equivalents" as treasury stock with reissuance rights
This definition ties "Common Stock Equivalents" to repurchased shares.
"Common Stock Equivalents" means treasury shares that may be reissued as common stock equivalents in financing transactions.
Definition of "Common Stock Equivalents" as convertible equity instruments
This definition ties "Common Stock Equivalents" to hybrid equity.
"Common Stock Equivalents" means any security that is convertible into common stock, including SAFE notes and preferred stock with conversion rights.
Definition of "Common Stock Equivalents" as founder equity with cliff vesting
This definition connects "Common Stock Equivalents" to startup founder shares.
"Common Stock Equivalents" refers to founder shares subject to cliff vesting, which become common stock after meeting specific service requirements.
Definition of "Common Stock Equivalents" as stock units in a trust
This definition links "Common Stock Equivalents" to trust-based holdings.
"Common Stock Equivalents" means stock units held in a trust that convert into common stock upon distribution to beneficiaries.
Definition of "Common Stock Equivalents" as dividend-paying convertible securities
This definition applies "Common Stock Equivalents" to dividend-linked equity.
"Common Stock Equivalents" refers to convertible securities that accrue dividends until conversion into common stock.
Definition of "Common Stock Equivalents" as public company warrants
This definition ties "Common Stock Equivalents" to public markets.
"Common Stock Equivalents" means publicly traded warrants that entitle the holder to purchase common stock at a predetermined price.
Definition of "Common Stock Equivalents" as employee benefit plan shares
This definition connects "Common Stock Equivalents" to corporate compensation.
"Common Stock Equivalents" refers to shares issued under an employee stock purchase plan, convertible into common stock upon completion of the offering period.
Definition of "Common Stock Equivalents" as convertible preferred securities with ratchet adjustments
This definition links "Common Stock Equivalents" to investor protections.
"Common Stock Equivalents" means convertible preferred stock with anti-dilution ratchet provisions that adjust conversion rates based on future financing rounds.
Definition of "Common Stock Equivalents" as profit interest units
This definition applies "Common Stock Equivalents" to alternative equity compensation.
"Common Stock Equivalents" refers to profit interest units that provide economic participation rights similar to common stock.
Definition of "Common Stock Equivalents" as joint venture equity rights
This definition ties "Common Stock Equivalents" to strategic partnerships.
"Common Stock Equivalents" means equity participation rights in a joint venture that are convertible into common stock of the parent company.
Definition of "Common Stock Equivalents" as convertible instruments with lock-up restrictions
This definition connects "Common Stock Equivalents" to restricted share conversions.
"Common Stock Equivalents" refers to convertible securities subject to lock-up periods restricting immediate conversion into common stock.
Definition of "Common Stock Equivalents" as pipe investment shares
This definition links "Common Stock Equivalents" to private investment deals.
"Common Stock Equivalents" means securities issued in private investment in public equity transactions that convert into common stock under negotiated terms.
Definition of "Common Stock Equivalents" as preferred stock with redemption features
This definition applies "Common Stock Equivalents" to structured equity.
"Common Stock Equivalents" refers to preferred stock with redemption provisions that allow conversion into common stock upon maturity.
Definition of "Common Stock Equivalents" as convertible capital notes in mergers
This definition ties "Common Stock Equivalents" to m&a transactions.
"Common Stock Equivalents" means convertible capital notes issued as consideration in mergers and acquisitions, which convert into common stock upon closing.
Definition of "Common Stock Equivalents" as dual-class share conversions
This definition connects "Common Stock Equivalents" to shareholder control structures.
"Common Stock Equivalents" refers to non-voting shares that automatically convert into voting common stock under predefined corporate governance terms.
Definition of "Common Stock Equivalents" as stock-based debt repayment instruments
This definition links "Common Stock Equivalents" to alternative debt settlements.
"Common Stock Equivalents" means financial instruments issued to creditors as repayment, which convert into common stock upon predefined maturity dates.
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