founders' shares

American  

plural noun

Finance.

1. shares of stock given, at least nominally, for consideration to the organizers or original subscribers of a corporation, sometimes carrying special voting privileges, but likely to receive dividends after other classes of stock.

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founders' shares British  

plural noun

1. shares awarded to the founders of a company and often granting special privileges

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Etymology

Origin of founders' shares

First recorded in 1885–90

Example Sentences

Warren Baker, a Seattle tax attorney who specializes in IRAs, said he would advise clients who are top executives working at a startup not to purchase founders' shares with a Roth to avoid accusations by the IRS that they got a special deal and undervalued the shares.

From Salon

At the time Thiel bought his founders' shares, his own hedge fund had already loaned the new startup $100,000, California and SEC records show.

From Salon

At one point the agency recommended Congress prohibit IRA accounts from buying investments that aren't traded on a public market, such as founders' shares.

From Salon

And while it didn't mention Thiel or his PayPal co-founders, the report laid out how startup founders' shares could be used to render IRA contribution limits irrelevant.

From Salon

The filing reveals that Thiel's founders' shares were among those the company sold to employees at "below fair value."

From Salon