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Dilution Protection

Dilution Protection

  • Term

    Main definition

  • Dilution Protection

    The protection that an investor seeks in order to be able to continually own the same percentage of the company that such investor owned at the time of making its investment. While all stockholders are generally subject to dilution when a company issues additional shares, a stockholder with dilution protection would be entitled to be immune from such dilution, resulting in the additional dilution affecting only the other stockholders, and therefore disproportionately affecting the other stockholders.  See Anti-Dilution Protection.

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