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Home > QFINANCE Dictionary > Definition of founders' shares

Definition of

founders' shares

Stockholding & Investments

stock issued to firm's founders stock held by founding members of a company, often with a higher dividend that is only paid after other stockholders have received their dividends and, in some cases, only when a specific level of profit has been achieved.

Related definitions of "founders' shares"

founders' shares - Related Articles
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  • Understanding Equity Capital in Small and Medium-Sized Enterprises

    Best Practice

    Ownership structure: The shares sold in the IPO are designated as primary shares, which are new shares, and secondary shares, which were previously owned by existing stockholders, usually the founders and managers of the firm. The size of the new issue relative to the existing shares
    By Siri Terjesen


Definitions of ’founders' shares’ and meaning of ’founders' shares’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’founders' shares’ and other financial terms with our online QFINANCE Financial Dictionary.

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