Question:What are the "conversion rights", typically stated on a term sheet?
A They are terms that allow a venture capitalist to sell off their stock at any point.
B They are terms that stipulate that the venture capitalists can convert their preferred shares into common shares which will be more easily liquidated.
C They are terms that allow the target company to surrender more equity to the venture capitalist if the venture is growing quickly.
D They are terms that prevent anyone from selling stock for the first three years.
+ AnswerB
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