Capitalisation Table - Cap Table Explained

Cap Table Definition:
A cap table, or capitalisation table, is a document or spreadsheet that outlines the ownership structure of a company. It typically lists the company's equity securities, such as common stock and preferred stock, and includes information about the number of shares outstanding, the percentage of ownership held by each shareholder, and the value of each share.

The cap table is an important tool for a company because it helps to track the distribution of equity among shareholders, and it is often used to determine the value of the company. It is also used to track changes in ownership and the issuance of new securities over time.

Cap tables are commonly used by startups and other early-stage companies, as well as by investors and other stakeholders who are interested in understanding the ownership structure of a company.