Define: Discount Price
the lowest price per share of the Standard Preferred Stock sold in the Equity Financing multiplied by the Discount Rate.
Legal accuracy standard set & glossary spot-checked by Imad Mohammed Nazar , Skadden-trained M&A lawyer, Legal Engineer at GenieAI
the price per share of the Standard Preferred Stock sold in the Equity Financing multiplied by the Discount Rate.
Relevant Circumstances
- When convertible securities convert at a discount to the next round's price
- If the discount rate and reference price need to be precisely defined
- Where investors negotiate either a discount or a valuation cap, or both