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Investments glossary

Anti-Dilution Provision


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Quotes of the day:

Better stop short than fill to the brim. Oversharpen the blade, and the edge will soon blunt. Amass a store of gold and jade, and no one can protect it. Claim wealth and titles, and disaster will follow. Retire when the work is done. This is the way of heaven.

— Tao Te Ching

Anti-dilution provisions—sometimes referred to as anti-dilution clauses—are measures built into a convertible security or an option that shield investors from the equity dilution that can occur when later issues of the stock hit the market at cheaper prices than those investors earlier paid. Such provisions are typically associated with convertible preferred stocks.

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