Create a share class
To create a new share class, navigate to 'Shares' under Securities.
1. Click the drop-down next to 'Manage Share Classes,' then select 'Create share class.'
2. Input your desired details, then click 'Next: Incorporation document.'
3. Select Incorporation document or upload new document and filing date, then click 'Next: share prices.'
4. Select Share prices and click: 'Next: Preferences.'
5. Choose Seniority details; Rights and preferences, and Dividends, then click: 'Next: Review.'
6. Review and click on: 'Create new share class.'
Share Class Name: A share class is a designation applied to a specified type of security such as common stock or mutual fund units. Companies that have more than one class of common stock usually identify a given class with alphabetic markers, such as "Class A" shares and "Class B" shares.
Share Class Prefix: ID used to classify Share Class, for example - CS for Common, PS for Series Seed Preferred and PA for Series A Preferred
Certificated Shares: A share certificate is a written document signed on behalf of a corporation, and serves as legal proof of ownership of the number of shares indicated. Also referred to as a "stock certificate".
Par Value: Par value is the minimum price per share that the shares must be issued. Par value is usually set at $0.001 or $0.0001 per share as stated in the corporate charter.
Price per Share: The price per share is listed on the detail section of the certificate and should list the price that the investor paid for per share
Seniority Level: Indicates the order in which the holders will get paid. Seniority ranks high to low, with 1 being the highest. The higher the number, the less seniority that share class has.
Original Issue Price: Price that was originally set for that series of preferred stock.
Conversion Price: If the preferred shares convert to common stock, this would be used to calculate the conversion ratio for the preferred stock into common stock. Typically, the conversion price is equal to the original issuance price.
Conversion Ratio: Can be seen in the cap table in the "fully diluted" column. By default, it is calculated by dividing the Original Issue Price by the Conversion Price. If a value is entered here, it will override the default calculation.
Multiplier: The multiple of the original Issue price that will be paid out pursuant to the liquidation preferences.
Non-cash Dividend: Indicates whether the investors will be receiving non-cash dividends, such as shares. The annual percentage rate of the investment that is paid back to the investor in additional shares. Select whether the non-cash dividend will be 'Non-Cumulative' or 'Cumulative'. This information is not reflected in the capitalization table.
Participating Preferred: Indicates if the holders of that class of preferred stock are paid out at the time that the common stockholders are paid out as well as during the payout based on their seniority level (pursuant to the liquidation preferences).