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After the preferred money is paid out, the preferred stock converts to common stock at some multiplier. The multiplier is usually 1x, though it varies. At that
by chris_va 11y ago
After the preferred money is paid out, the preferred stock converts to common stock at some multiplier. The multiplier is usually 1x, though it varies. At that point, whatever money is left is generally split between all common shareholders (investors and employees).