Startup Terms Glossary
What is Pari Passu?
Pari Passu – or “equal footing” in Latin - refers to the value of new shares issued by a company who is already publicly traded. This rule entails that the new shares hold the same value, dividend rights, and winding-up rights as the shares from the original initial offering.
Pari Passu Examples
An example of how Pari Passu applies in a startup:
- Example 1. A marketing startup issues more shares in their company six months after their original IPO. According to Pari Passu, the newly created shares are identical to shares that are already on the market.
Learn about an Pari Passu by checking out this page .
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
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