Weighted Average

A form of antidilution protection that adjusts the conversion price or the amount of securities into which a convertible security converts when a subsequent offering of securities (common stock or preferred stock) is made at a lower price. Unlike full ratchet antidilution provisions, the weighted average price protection is affected by the size or amount of the subsequent issuance to reflect the actual adverse impact incurred by the security holder. The conversion price is reduced by applying a complicated formula based on the shares outstanding prior to the new issue of securities and the current conversion price, and the amount of money received by the issuer divided by the number of fully diluted shares of common stock outstanding after the new issue.

0 0
  • قسم من أقسام الكلام: proper noun
  • المجال / النطاق: خدمات مالية
  • الفئة:
0 

Finance & Investment

الفئة: Business

إجمالي المصطلحات: 319

المنشئ

  • kirb
  •  (Bronze) 304 النقاط
  • 100% positive feedback
© 2026 CSOFT International, Ltd.