1. designed to prevent or protect against a reduction in the value, ownership percentage, or voting power of existing shareholders
Usage: finance and corporate law; commonly used in discussions of stock options, warrants, and corporate governance

Examples

• The company implemented antidilution provisions to protect early investors from future stock issuances.
• Antidilution clauses in venture capital agreements ensure that founders maintain their ownership stakes.
• The board approved an antidilution adjustment to the warrant exercise price.
• Investors negotiated antidilution rights before committing capital to the startup.
• The antidilution formula protected shareholders when the company issued new shares at a lower price.