anti-dilution laws

Anti-dilution laws and provisions are designed to protect investors from the dilution of their ownership stake when a company issues additional shares at a lower price than what they originally paid. These rules adjust the price at which existing investors bought in or increase their number of shares, maintaining their proportional ownership. Essentially, they ensure that investors’ stakes and potential value are preserved despite new, often cheaper, stock issuance, fostering fair treatment and encouraging investment confidence in companies.