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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Anti-Dilution Covenants

Definition:

Dilution and delusion are generally bad things to the original owners of securities or a brain. An anti-dilution clause keeps pro rata ownership flat, even for subsequent investment rounds. Those who own this valuable clause usually get stock options or warrants or share grants to maintain their ownership percentages.

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