Definition
Antidilution Provisions
antidilution provisions - Antidilution Provisions
are contractual measures that allow investors to
keep a constant share of a firm's equity in light
of subsequent equity issues. These may give investors
preemptive rights to purchase new stock at the offering
price. Examples include Broad-Based Weighted Average
Ratchet, Narrow-Based Weighted Average Ratchet,
and Full Ratchet Antidilution.
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