A round of financing where shares sell for a lower price than previous rounds is known as a(n):
A)reset round
B)recessive round
C)angel round
D)anticipation round

Question

Quizplus · Accepted Answer

In a reset round, the shares are sold at a lower price than previous rounds of financing. This is often done to adjust the valuation of the company and allow new investors to buy in at a lower price. A recessive round, angel round, and anticipation round are not commonly used terms in the context of fundraising.

A Round of Financing Where Shares Sell for a Lower