Glossary

AI Finance Glossary

Plain-English definitions of AI, accounting, and SaaS-finance terms.

C

Co-Sale Rights

Investor right to sell shares alongside a founder in a secondary transaction on the same terms.

Cap Table & EquityContract Management

D

Drag-Along Rights

A provision allowing majority shareholders to force minority shareholders to agree to a company sale on the same terms.

Cap Table & EquityContract Management

I

Indemnification

Contractual obligation by one party to compensate another for losses arising from specified events or breaches.

Cap Table & EquityContract Management

L

Letter of Intent

Preliminary document expressing a party's intent to enter a transaction, outlining key proposed terms.

Cap Table & EquityContract Management

P

Power of Attorney

A legal document authorizing a designated person to manage financial, legal, or healthcare decisions on behalf of the principal.

Personal BudgetingContract Management

R

Representations and Warranties

Contractual statements of fact in a purchase agreement that allocate risk between buyer and seller.

Cap Table & EquityContract Management

Right of First Refusal

Investor right to purchase shares before a stockholder transfers them to a third party.

Cap Table & EquityContract Management

T

Tag-Along Rights

A right allowing minority shareholders to sell their shares alongside a majority shareholder on the same terms in a proposed sale.

Cap Table & EquityContract Management

Glossary

AI Finance Glossary

Categories

C

Co-Sale Rights

D

Drag-Along Rights

I

Indemnification

L

Letter of Intent

P

Power of Attorney

R

Representations and Warranties

Right of First Refusal

T

Tag-Along Rights