Founders’ stock refers to the shares that are initially issued to the founders of a startup company. It represents the ownership stake held by the individuals who played a crucial role in establishing and launching the company.

In most cases, founders' stock does not come with any special rights or privileges that differentiate it from the common stock eventually issued to other shareholders. The founders hold common stock, which typically carries the same rights and privileges as the common stock issued later on. This means that founders have voting rights, potential dividend distributions, and the ability to participate in any future appreciation of the company's value.

However, what distinguishes founders stock is the low purchase price at which it is issued. When a startup is formed, its value is often minimal or nonexistent. As a result, founders are usually issued their shares at a very low cost or nominal price, reflecting the early-stage and high-risk nature of the company.

It's worth noting that founders' stock may be subject to vesting provisions, which means that the founders' ownership of the shares may be earned over a specific period of time or upon achieving certain milestones. Vesting ensures that founders have ongoing commitment and alignment with the company's long-term goals.