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Glossary Venture Capital / Term

Full Ratchet Antidilution

The sale of a single share at a price less than the favored investors paid reduces the conversion price of the favored investors' convertible preferred stock "to the penny". For example, from $1.00 to 50 cents, regardless of the number of lower priced shares sold.

Permanent link Full Ratchet Antidilution - Creation date 2020-02-03


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