Narrow-Based Weighted-Average Anti-Dilution Protection

• Term

  Main definition

• Narrow-Based Weighted-Average Anti-Dilution Protection

  A formula (and related adjustment mechanism) to calculate anti-dilution protection adjustments, which are adjustments to a conversion price that are made in order to compensate the holder for dilution. Anit-dilution adjustments are frequently incorporated in convertible preferred stock. See Anti-Dilution Protections and Weighted-Average.