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Anti-dilution Clause

an-tee dih-LOO-shun klawz

/ˌæntiː dɪˈluːʃən klɔːz/

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Syllable breakdown

antidilutionclause

Dictionary meaning

A provision protecting investors from ownership percentage reduction when new shares are issued at a lower price than they paid

Examples

  • The anti-dilution clause protected early investors during the down round.

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