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[Music] okay so we win over shares now lets talk about the other kinds of ownership rights you might run into common shares and preferred Shares are examples of equity where the share price gets determined at the time the shares are granted when you incorporate you might authorize the issuing of 10 million shares but right now youre at the earliest stage of your company right at this stage a lot of Founders dont know how much their company is worth maybe theres no Revenue yet maybe theres no product yet for whatever reason they just might not be ready to say what their share price is problem is they still might need to raise money in order to get their business up and running so how do you raise money and give shares to investors when you dont actually know the price of one share of your company say hello to the third type of asset youll probably have on your cap table a convertible instrument convertible instrument sounds like a fancy word but its basically just a type of cont
