Antidilution refers to mechanisms or provisions designed to prevent or mitigate the dilution of existing shareholders’ equity in a company, often in the context of issuing new shares. Antidilutive measures are typically included in convertible securities or stock option agreements to protect investors from a decrease in their ownership percentage or earnings per share. These provisions ensure that the value of existing shares is preserved.
Get Your FREE Exam Secrets Cheat Sheet!
Plus a 3-Part CMA Video Course
82,000+ accounting and finance pros got their free CMA cheat sheet.
Get yours too, today!