Anti-Dilution Provision
/ˌænti dəˈluːʃən prəˈvɪʒən/
Definitions
- (n.) A contractual clause that protects investors from the reduction of their ownership percentage when new shares are issued at a lower price than the original investment.
The anti-dilution provision adjusted the conversion price to protect early investors from dilution.
Forms
- anti-dilution provision
- anti-dilution provisions
Related terms
See also
Commentary
Anti-dilution provisions vary in scope; common types include weighted-average and full ratchet adjustments, impacting investor protections differently.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.