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Glossary > Glossary - Pg. 250

Glossary 250 R&D Research and development. Recoup Recover costs. Representation A guarantee that a particular fact is as stated or promised. Reversion The right to regain assets or rights upon specified terms and conditions. Right of first refusal The right to have an exclusive first look to decide whether to purchase a given asset or right. Right of last refusal The right to match the final offer to buy an asset or right. Rights fee License fee paid up front. Usually supplemented with back-end participation. SBC stock Small business corporation stock. Qualifies for special reduced taxes. S-corporation A form of corporation enjoying pass-through taxation allowed by the IRS for most companies having 75 or fewer shareholders. Secured debt Loan backed by a pledge of other assets. Security An investment instrument issued by a company as evidence of debt or equity. SKU Stock-keeping unit. Spread Difference between any two prices. Statutory Mandated by law. Sublicense License granted to a third party by a licensee. Subscribe Agree to buy securities in an offering. Sweat equity Paying for ownership with work instead of cash. Turnaround Fees that may be due to the licensor if licensed rights revert to the owner. Unaccredited investor An individual who does not meet the SEC criteria of an accredited investor. Unsecured debt Loan not backed by a pledge of other assets. USPTO United States Patent and Trademark Office. Vest Become exercisable (options) or no longer subject to company's repurchase (stock). Warrants A certificate, usually given along with a security, allowing the owner to buy a set number of other securities at a set price.