Investments glossary

Anti-Dilution Provision

Anti-dilution provisions—sometimes referred to as anti-dilution clauses—are measures built into a convertible security or an option that shield investors from the equity dilution that can occur when later issues of the stock hit the market at cheaper prices than those investors earlier paid. Such provisions are typically associated with convertible preferred stocks.

Click to rate this post!
[Total: 0 Average: 0]

Leave a Reply

Your email address will not be published. Required fields are marked *