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by late2part
3307 days ago
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Liquidation preference means they are preferred when there is a liquidation. So if the company is sold the person with the liquidation preference gets their money out first at the liquidation preference ratio. In this case, $2Mx2 means if the company is sold for $10M even though they only own 10% they get the first $4M. http://www.investopedia.com/terms/l/liquidation-preference.a... |
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