P&L stands for profit and loss. P&L is commonly used to refer to the P&L statement or income statement which outlines a company’s income and expenses for a given year.
A Pivot is a wholesale change of a startup’s current business model in an attempt to capitalize on a totally different market opportunity.
A Party Round is a financing round with many participants, usually at small dollar amounts.
A Prospectus is used to solicit potential investors in the sale of securities. Prospectuses often include pertinent information including the company’s business plan, capitalization structure, management structure, and information about the securities being sold. The SEC rules or a state’s […]
Pro-Rata means proportional. For instance, if investors have a pro-rata Right of First Offer, then that means each investor will have a right to purchase new securities in proportion to their ownership. I.e. if an investor owns 5% of a […]
A Put Right is a purchased option to sell a certain amount of a security at a fixed price back to the option seller before a certain date.
A Purchase Agreement is an agreement that memorializes the sale and purchase of property. Startups are often involved in many purchase agreements, including Asset Purchase Agreements, Membership Interest Purchase Agreements, Stock Purchase Agreements, Equity Purchase Agreements, etc.
A Public Offering is a company selling its equity to the public. Public offerings in the U.S. must be registered with and approved by the SEC.