Cap Table
Short for 'capitalization table,' a detailed spreadsheet or document that records the equity ownership structure of a company, including all shares, options, warrants, convertible instruments, and their holders. The cap table tracks each stakeholder's ownership percentage and is essential for understanding dilution, planning future fundraising, and making board decisions about equity. Boards regularly review the cap table when approving stock grants, new funding rounds, or exit transactions.
Related Terms
The reduction in existing shareholders' ownership percentage that occurs when a company issues new shares, such as durin...
A contractual right granted to an employee, director, or advisor to purchase a specified number of company shares at a p...
The process by which an employee or director gradually earns full ownership rights to equity compensation (such as stock...
A class of equity ownership that carries preferential rights over common stock, typically including liquidation preferen...
The basic class of equity ownership in a corporation that typically carries voting rights and a residual claim on the co...
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