Cap table, ownership & dilution · Core

Share class

Also called: class of stock

ELI5

A type of share with its own rights.

Used in conversation

“The company has common and two preferred share classes.”

Definition

A category of shares carrying a particular set of rights.

Here “Share class” means: A category of shares carrying a particular set of rights.

Pitch context

You will see “Share class” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches cap table, ownership & dilution.

Why it matters: In cap table, ownership & dilution, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 8

Direct term-level sources and supporting source families.