antidilution
/ˌæntiˌdaɪˈluʃən/
noun
- A provision or right that protects a shareholder's ownership percentage from being reduced when new shares are issued.
- The investor insisted on an antidilution clause in the contract to protect her stake.
- Antidilution provisions are common in venture capital deals.
- Without antidilution, early investors could lose control of the company.
adjective
- Designed to prevent the reduction of a shareholder's ownership percentage.
- Antidilution rights are important for startup investors.
- The antidilution agreement ensured his shares kept their value.
- They negotiated an antidilution provision in the funding round.