Founders Stock
The term 'founders' stock' refers to shares issued to the founders of a company, typically at face value. These shares often come with a vesting period, meaning there is a lock-in period during which the founders cannot sell their shares. During this period, founders' stock may not generate returns, unless dividends are attached to it. Founders' stock is not an official accounting term but is used informally to describe the shares allocated to the company's founders as part of their ownership stake in the business. The vesting period ensures that founders stay committed to the company's long-term success.
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