Anti-Dilution Provision

What Does It Mean?
What Does Anti-Dilution Provision Mean?
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
Investopedia explains Anti-Dilution Provision
These are common with convertible preferred stock, which is a favored form of venture capital investment.

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