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Weighted Average Anti-Dilution

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Home Startup Terms Glossary Weighted Average Anti-Dilution

What is Weighted Average Anti-Dilution?

Weighted average anti-dilution is formula which calculates the value of securities offered by a startup. Generally, at an initial public offering, the value of a share is equivalent to the price per share. As time goes on, these numbers can drift apart. The weighted average anti-dilution formula allows for the adjustment of these numbers to protect investor’s capital from depreciating over time.

Weighted Average Anti-Dilution Examples

Examples of weighted average anti-dilution:

  • Example 1. Protects investors from losing too much money
  • Example 2. Protects stockholders shares from being diluted in the event that the market downturns

Here’s another web page about weighted average anti-dilution.

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