[james_alonso]

Right, employees are getting common stock so they don't get to jump to the front of the line when a company is sold. But they are also paying the common stock price, which is a fraction of the price paid by the preferred stock, so it makes sense that each share they own has less rights associated with it vs. the shares the investor pays a premium for.

[comrade_ogilvy]

Exactly. The preferred stock is paid for with real money. The common shares I bought as an employee was at single digit pennies a share. While I am not exactly happy how I got wiped out, I did less badly than many VCs did.