Anti-Dilution Provision
A provision in an option or a convertible security. It protects an investor from dilution resulting from later issues of stock at a lower price than the investor originally paid. Also known as an "anti-dilution clause". Investopedia Says:
These are common with convertible preferred stock, which is a favored form of venture capital investment. Related Terms:
Convertible Preferred Stock
Convertibles
Diluted Earnings Per Share - Diluted EPS
Diluted EPS
Dilution
Employee Stock Option - ESO
Full Ratchet
Provision
Venture Capital |