What is FOUNDERS’ SHARES?

Stock issued to an entity’s originators. Entitled to after tax profits, no matter how much. Typically do not recognize any return or profit until common or ordinary stock holder dividend payout occurs.

More On This Topic



Link to This Definition
Did you find this definition of FOUNDERS’ SHARES helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary