Anti-Dilution Statute

An Anti-Dilution Statute is a legal provision designed to protect investors in a company from their ownership percentage being reduced if the company issues new shares at a lower price than what earlier investors paid. It adjusts the conversion ratios or share prices to ensure that initial investors' stakes are maintained fairly, preventing their investment value from being diluted by future, less expensive share offerings. This helps preserve the economic and voting interests of early investors during subsequent financing rounds.