Anti-Dilution Provision
Definition of '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." |
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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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