Typical preferences and covenants negotiated by investors include:

Question

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Both registration rights and the right of first refusal are typical preferences and covenants negotiated by investors in various investment agreements. Registration rights allow investors to sell their shares more easily by requiring the company to register their shares with the SEC. The right of first refusal gives investors the opportunity to purchase shares before the company offers them to an outside party.

Typical Preferences and Covenants Negotiated by Investors Include