Working with Stock Classes
Stock class properties
- Class type - common stock classes are usually named "Common". Preferred stock classes are usually named after the fund raise series they were issued in, such as "Series A Preferred".
- Seniority - determines the payout order at a liquidity event. Shareholders with higher seniority stock are paid first. Usually common stock start at seniority 1, then each class goes up by 1 per preferred stock class. Reference.
Add stock class
Head to the Cap Table tab on the left panel and click Stock from top. Here, click the button 'Add Class.'
Edit or delete stock class
To edit a Stock Class, go to the Cap Table tab on the left panel. Click Stock from top and then the name of the stock class you want to edit. Then click "Edit Class."
To delete a Stock Class, click the "Delete Class" button next to Edit Class.
*Note: you will need to delete all outstanding shares, options, and warrants before the class can be deleted.
Amend authorized shares
An amendment is done by an existing stock class's authorized shares. To view previous amendments, go to Ownership > Stock, click on the stock class name to inspect it.