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Usually the common stocks goes at a discount of around close to 15-20percent when compared to preferred for good deals. If the company is not doing well, the di
by hatred 9y ago
Usually the common stocks goes at a discount of around close to 15-20percent when compared to preferred for good deals. If the company is not doing well, the discount would be higher proportionally.
- sulam 9y agoMy experience is that common can be one-third of preferred. I'm sure that spread varies, but it's wider than you're describing.
- acjohnson55 9y agoOut of pure curiosity, what perspective would give one this experience? I guessing working at a VC fund?
- sulam 9y agoFounding and working for multiple startups, including some that were fairly successful and therefore attracted multiple rounds of funding. I can't claim to have as much data as a VC would have, but I certainly have seen wider spreads personally, so I can attest that they exist.
- acjohnson55 9y agoGot it. Thanks for sharing! I wish there were a better clearing house for this sort of collective experience. I guess HN serves that purpose, to an extent, but it's hardly organized.