‘The stocks should be issued to the founders as soon as a company takes legal form, especially before it assumes a significant value based on its expected cash flows in future.’ Why is this statement...

‘The stocks should be issued to the founders as soon as a company takes legal form, especially before it assumes a significant value based on its expected cash flows in future.’ Why is this statement valuable especially for start-up ventures? Examine this statement’s relevance by considering two examples of start-up ventures.