Episode 6 – “Series A” Stock & Redemption Rights
March 19, 2011
In Episode 6 of The Wendel Forum (originally aired on Saturday, March 12, 2011, on Green 960 AM radio), Dick Lyons discusses the opportunities and consequences of issuing Series A stock, or a first round of convertible preferred stock, as a means of raising money for our fictional company GreenCo.
Usually issued at some point after the company has raised its initial capital from founders, family and friends, the Series A stock can infuse the company with much needed capital for growth. Along with Series A, come “redemption rights,” which allow investors to demand the company repurchase their shares after a set period of time. What might this mean for our fictional company GreenCo?
Listen to Episode 6: wendel_forum_6.