Mergers and acquisitions are a common occurrence in the world of business. Still, it can be challenging for those unfamiliar with the process to understand what happens to company stock during such an event. This article explains the definition of an acquisition, its implications for shareholders, and potential effects on stock prices. It advises investors…
Are you a business owner or investor recently selling stocks, bonds, and other securities? If so, you may be required to file IRS Form 1099-B. This form reports proceeds from barter exchanges and stocks, bonds, and other securities sales. In this blog post, we’ll explore the purpose of this form, who must file it, what…
Employee compensation is a critical factor in any company’s success, and one of the most popular forms of compensation today are stock options. Incentive Stock Options (ISOs) and Non-Qualified Stock Options (NSOs) are two types of stock options that offer employees the chance to purchase company stock at a discounted price. Knowing the differences between…
Raising capital is an essential part of the startup world. While traditional equity investments are often used, two other popular instruments that have become increasingly common are safe and convertible notes. These two forms of investment offer companies and investors different advantages and disadvantages, so it is vital to understand their differences before deciding. In…
Cap table management is an integral part of running a successful business. It records and tracks all the equity ownership information for your company, such as who owns shares, how many shares are owned, and how those shares are allocated. It can be difficult to accurately track ownership changes or properly manage stock options and…
Equity management and investing are complicated topics, and many of our clients run into terminology that’s new to them and their operations. This is our ever-growing glossary of terms related to cap table and equity management, touching on key Astrella offerings and services. Consult with an Expert Today Cap Table: A cap table, short for…
Welcome to our comprehensive FAQ page on equity management, cap table management, and company funding. Whether you’re a startup founder, an employee seeking to understand stock options, or an investor navigating funding rounds, this resource is designed to provide clear and concise answers to the most common questions in this dynamic and vital industry. From…
Stock dilution is an essential part of equity investing that can benefit businesses. It is increasing the number of shares in a company, either through issuing new shares or by converting assets into stock. While this practice can be useful for raising capital, giving employees equity-based compensation, and increasing voting control, it also has potential…
As an entrepreneur, you want to ensure your startup reaches its full potential for success. Investing in a new venture is a significant undertaking, and finding the right investor who can help take your business to the next level is essential. In this article, we’ll discuss the different stages of investment and how to research…
Navigating the intricacies of startup funding involves understanding a range of financial tools, and one that stands out for its adaptability and significance is the convertible note. In its technical sense, a convertible note is a debt instrument that startups use to raise capital. It’s essentially a loan that can be converted into equity (ownership…