> ## Documentation Index
> Fetch the complete documentation index at: https://docs.launchboard.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Define share classes for your cap table

> Create and manage authorized stock classes — Common, Preferred series, and more — that form the underlying structure of your Launchboard cap table.

A share class defines a category of equity with its own rights, preferences, and authorized share count. Common examples include Common Stock (typically held by founders and employees) and Preferred Stock series (typically held by investors, such as Series Seed Preferred or Series A Preferred). Every security on your cap table must belong to a share class.

Share classes live at **Cap Table → Stock Classes**. You'll need at least one share class before you can issue any securities.

## What's on a share class record

| Field                             | Description                                                                                                      |
| --------------------------------- | ---------------------------------------------------------------------------------------------------------------- |
| Name                              | Human-readable label, e.g. "Common Stock" or "Series A Preferred"                                                |
| Class type                        | `Common` or `Preferred`                                                                                          |
| Authorized shares                 | The maximum number of shares that can be issued in this class                                                    |
| Par value                         | The nominal value per share (often \$0.0001 for early-stage companies)                                           |
| Votes per share                   | Voting weight assigned to each share                                                                             |
| Seniority                         | Liquidation priority order; 1 is highest                                                                         |
| Liquidation preference            | For Preferred: the multiple applied to the original investment on liquidation (e.g. 1x)                          |
| Participation cap                 | For participating Preferred: the cap on additional participation after the preference (leave blank for uncapped) |
| Price per share                   | Issuance price for the class                                                                                     |
| Board / stockholder approval date | Governance dates, if applicable                                                                                  |

## Creating a share class

<Steps>
  <Step title="Go to Stock Classes">
    Navigate to **Cap Table → Stock Classes** in the left sidebar.
  </Step>

  <Step title="Click Add share class">
    Select **Add share class** from the top-right action area.
  </Step>

  <Step title="Enter the class name and type">
    Give the class a descriptive name (e.g. "Common Stock" or "Series Seed Preferred"). Select `Common` or `Preferred` as the class type.
  </Step>

  <Step title="Set authorized shares and par value">
    Enter the number of **authorized shares** — this is the ceiling for issuance in this class. Add the **par value** if your incorporation documents specify one.
  </Step>

  <Step title="Configure voting and seniority">
    Set **votes per share** (commonly 1 for Common, 10 for founder shares, 0 for non-voting Preferred). Set the **seniority** rank to determine liquidation priority relative to other classes.
  </Step>

  <Step title="Add preferred terms (if applicable)">
    If the class type is Preferred, fill in the **liquidation preference multiple** (e.g. `1` for 1x non-participating) and, if the shares are participating, the **participation cap multiple**.
  </Step>

  <Step title="Save the share class">
    Click **Create**. The share class appears in the list. Tokenization starts automatically in the background — see below.
  </Step>
</Steps>

<Tip>
  If you've uploaded an incorporation charter or board consent to the Dataroom, Launchboard may extract and create share classes for you during the document merge step.
</Tip>

## Tokenization status

Each share class has a tokenization status that tracks whether it has been represented on-chain:

| Status        | Meaning                                                                                       |
| ------------- | --------------------------------------------------------------------------------------------- |
| Not tokenized | The class exists in Launchboard but has no on-chain representation yet                        |
| Pending       | Tokenization is in progress — an SPL mint is being created on Solana                          |
| Tokenized     | The class has a linked Metaplex NFT (class certificate) and a fungible SPL mint (share units) |
| Failed        | Tokenization encountered an error — use **Retry Tokenization** on the row                     |

When you create a share class, Launchboard automatically begins the tokenization process in the background. This takes roughly 60–90 seconds. You don't need to wait for it to complete before issuing securities.

## What tokenization means

When a share class is tokenized, Launchboard creates two linked assets on Solana via the OASIS API:

* A **Metaplex NFT** — the class certificate, visible in wallets like Phantom, containing metadata about the share class.
* A **fungible SPL mint** — the token that represents individual share units. When you mint a security to a stakeholder, tokens from this mint are sent to their Solana wallet.

The connection between the NFT and the SPL mint is encoded in the NFT metadata, creating a verifiable link between the class-level certificate and the individual share units held by stakeholders.

<Note>
  Minting tokens to individual stakeholders is a separate step that happens at the security level, not the share class level. Once a share class is tokenized, you can mint from it when issuing or activating securities. See [Securities](/cap-table/securities) for the full minting flow.
</Note>