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Main Finance Terms full ratchet provision

full ratchet provision



See alsodilution protection
Related Terms:
Dictionary of Finance and Investment Terms
dilution protection

any right or provision designed to protect existing investors from dilution. Examples would include provisions that adjust the conversion ratio of convertibles in the event of a stock dividend or other unusual common stock distribution, preemptive right statutes, and venture capital full ratchet provisions, specifying that options and conversion privileges be exercisable at the lowest stock price at which stock was issued following issuance of the option or convertible.



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full ratchet provision