Cap Table
Content
Definition
Cap Table, short for capitalization table, is a spreadsheet or table that shows the equity capitalization for a company.
Usage and Context
Cap tables are vital for startups and businesses. They track who owns what. This includes stocks, options, and equity percentages.
Frequently asked questions
- What is the capitalization cap table? A cap table is a list that shows all the company`s ownership details. It includes shares owned by investors, founders, and employees.
- What is the capital structure table? The capital structure table is another name for a cap table. It details the company`s equity ownership and investments.
- What is the formula for the cost of equity? The cost of equity is calculated using models like CAPM. It factors in risk and return expectations for shareholders.
Benefits
A clear cap table helps in making informed decisions. It`s crucial for fundraising, selling, or expanding the business.
Conclusion
Cap tables are key for managing a company`s equity. They help keep track of who owns what and are essential for growth and investment strategies.
