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Ownership basics

Cap table glossary

Look up ownership, award, financing, exit, and recordkeeping terms used throughout Cap Table and its documentation.

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Read terms in their stated context

This glossary explains terms as used in this app and library. A contract or reporting framework may define the same term more specifically. Use the governing records for the transaction and the linked workflow for the app’s behavior.

Ownership and capitalization

Ownership terms
TermMeaning in this library
Cap tableA record of securities and holders, with ownership calculated on a stated basis and date.
StakeholderA person or entity associated with securities; adding a stakeholder alone creates no holding.
Share classA category of shares with recorded terms such as common or preferred rights.
Authorized sharesThe class’s recorded share limit; this is different from issued shares and from a plan reserve.
OutstandingIn the app, the share count represented by open issued certificates.
Fully dilutedThe app’s ownership basis adding relevant options, unsettled RSUs, warrants, and optionally unallocated open-plan reserve.
Unallocated poolAvailable reserve in plans, separate from awards already granted.
DilutionA reduction in a holder’s ownership percentage when the relevant denominator increases.
As-convertedA comparison that treats a convertible security or class as the shares it would become under specified assumptions.

See Share-count definitions for a worked comparison.

Awards and vesting

Award terms
TermMeaning in this library
Option; strikeAn award with a stated exercise price per share. Exercise and vesting are different events.
RSUAn award of units that can settle into shares under its terms; there is no option strike.
Restricted stockIssued shares subject to restrictions, including reverse vesting when recorded.
Vesting; cliffThe schedule by which quantities vest; a cliff postpones the first scheduled vesting.
TrancheA quantity assigned to a particular vesting date in a custom schedule.
AccelerationRecorded terms that bring forward vesting under specified triggers.
Exercise; certificationRecording an option exercise and issuing its linked share certificate, which the app can handle together or separately.
SettlementRecording the delivery of shares for RSU units.
Committed reserve; recyclingCapacity used under a plan, and its rules for how later events affect availability.

See An option grant lifecycle for the connection between these quantities.

Financing and exit modeling

Modeling terms
TermMeaning in this library
Pre-money; post-money valuationValuation before the specified new investment and after including it under the stated financing assumptions.
SAFE; convertible noteInstruments recorded before conversion into a determined share quantity; the app’s note model includes simple interest.
Valuation cap; discountTerms used to determine a supported conversion price. A cap is not a recorded independent appraisal.
Pool top-upAn increase to available plan reserve; the round model includes its increase in pre-money capitalization.
Anti-dilution adjustmentAn adjustment for supported preferred-share protection terms, distinct from protection against every ownership change.
Liquidation preference; waterfallA payment-priority term and the modeled sequence for distributing available proceeds.
ParticipationA preferred class’s recorded right to share in a remainder in addition to its preference, subject to its terms.
FMVFair market value; the app stores supplied share valuations rather than independently computing them.
ScenarioNamed model inputs recalculated against company records, not a frozen ownership snapshot.

Records and recovery

Recordkeeping terms
TermMeaning in this library
CertificateThe app’s record of issued shares and their links; creating the record is not signing an issuance document.
Effective date; recorded timeWhen an event applies and when the app recorded the operation.
BaselineThe first observed state at the start of permanent History, without an invented earlier trail.
Activity; HistoryA recent summary feed and the separate permanent transaction trail with original values and outcomes.
Restore pointA retained snapshot of company working data captured before selected operations.
Company backupA Settings JSON export of company data and history; attachment contents are separate.
Attachment manifestA list of referenced documents, not a copy of their contents.

See Exports, backups, and history to choose the artifact needed for a review or recovery.