Mastery card
I can explain Liquidation Preference
Who gets paid first - and how much - when the company is sold or shut down.
Liquidation preference gives certain investors the right to receive a specified payout from sale or liquidation proceeds before common shareholders receive anything.
Sticky trick
Read 1× non-participating vs participating prefs - they feel similar in name but differ a lot in outcomes.
Take into the room
In plain English, what is Liquidation Preference?
Or open the share card 🚪
Or start your own 5-word trail from home.