• definition

What is a Cap Table ?

Capitalization table (or “Cap Table”) allows the shareholders to receive an up-to-date status of their holdings in the firm’s equity. The Table includes the details of all the company’s shareholders and presents information regarding the equity (i.e. segmentation of shares, total number of shares, price per share, etc.). By using the Cap Table, one can manage the company’s profit and holdings distribution while deducting different conclusions about new investor’s policy. In addition, it enables entrepreneurs to run different theoretical scenarios as to the amount (or percentage) of shares they can distribute without deviating from the goals that they have set (for example: keeping control of the company).

 

Example of cap table:

Example of cap table

By | 2016-11-04T16:56:14+00:00 October 14th, 2016|Legal Definitions|0 Comments

About the Author:

Lior Keller
Third year Law & Accounting student at the IDC Herzliya. Dreams of becoming an influential figure in Israel's economy and leading his own company. In his free time he enjoys doing crossfit and reading Robin Sharma's books (sometimes at the same time..)
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