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LSDefine

Simple English definitions for legal terms

antidilution provision

Read a random definition: equal protection under the law

A quick definition of antidilution provision:

An antidilution provision is a rule that protects the value of a convertible security when a company takes actions that could reduce its value. This provision ensures that the conversion ratio, which determines how many shares the security can be converted into, remains fair and unchanged despite any share splits or dividends. Essentially, it prevents the investor from losing out on the value of their investment due to actions taken by the company.

A more thorough explanation:

An antidilution provision is a clause in a convertible security that protects the investor's conversion privilege from being affected by certain corporate actions that could dilute the value of their investment. This provision is designed to ensure that the investor's ownership percentage remains the same even if the company issues more shares or undergoes a stock split or dividend.

Suppose an investor holds a convertible bond that can be converted into 100 shares of a company's stock. The conversion ratio is 1:1, meaning that each bond can be exchanged for one share of stock. However, if the company issues more shares or undergoes a stock split, the conversion ratio could change, diluting the value of the investor's shares. To protect against this, the bond may include an antidilution provision that adjusts the conversion ratio to maintain the investor's ownership percentage.

For example, if the company issues 100 new shares, the conversion ratio may be adjusted to 1:1.1, meaning that the investor would receive 110 shares instead of 100. This ensures that the investor's ownership percentage remains the same, even though the total number of shares has increased.

Another example of an antidilution provision is a "full ratchet" provision, which adjusts the conversion ratio to the lowest price at which new shares are issued. This protects the investor from any decrease in the value of their investment due to the issuance of new shares at a lower price.

antidilution act | antidissection rule

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WorthlessAttractiveZombie
18:00
we're talking about the jobs we want after we get into law school
oh yeah, sure!
babycat
18:03
Yeah but do you prefer a hand job to oral? I feel like I’ve never met anyone who likes that better. I guess the perk is that it’s less messy?
BulbasaurNoLikeCardio
18:04
Did the TAMU interview, my dog that is like a husky decided to stick his snoot under the door crack deepy snort/inhale then YYEEELLLLL during my last answer so yeah hopefully they love dogs.
BulbasaurNoLikeCardio
18:04
not sure what conversation is being had but blowie beat a handjob, i can just give myself a handie
babycat
18:06
@BulbasaurNoLikeCardio: this is exactly what I’m saying! you get it
18:06
hello
JumpySubsequentDolphin
18:06
hi Eggan
18:06
after a long day at work i come home to no decisions
18:07
daily "berk td" imminent
18:07
berk today :eyes:
BulbasaurNoLikeCardio
18:07
and if we are being real, I give myself a much better handie then any girl ever has
JumpySubsequentDolphin
18:07
😧
BulbasaurNoLikeCardio
18:08
@Eggan: no decision beats an R
babycat
18:09
@BulbasaurNoLikeCardio: you have more practice
windyMagician
18:10
how is a blowjob less messy than a handjob? you can swallow it
BulbasaurNoLikeCardio
18:10
@babycat: exactly, like its much faster lmao
BulbasaurNoLikeCardio
18:11
If swallowing is involved I think it turns more towards a blowie like if your mouth is going there for the big finish why not just have it there from the start and skip the handie
JumpySubsequentDolphin
18:12
maybe she has tmj
WHAT DID I COME BACK TO AGAIN
WorthlessAttractiveZombie
18:12
Yeah I cant explain this one jack
babycat
18:12
Lol I just meant if it’s sloppy spit gets everywhere
BulbasaurNoLikeCardio
18:14
They make those drooling pill/candy things that make sloppy toppy extra sloppy
WorthlessAttractiveZombie
18:15
bulbasaur, send the links please...it's for a friend
windyMagician
18:15
but if it's a handjob cum will also get everywhere??
BulbasaurNoLikeCardio
18:17
@WorthlessAttractiveZombie: go to any sex/adult store they always got them up front. Don't wanna display my sex life but they work wonders
WorthlessAttractiveZombie
18:17
that'll be a stocking stuffer for sure lol
BulbasaurNoLikeCardio
18:17
@windyMagician: that is my thought too, makes the handie messier
babycat
18:18
oh I mean you can use a tissue or your mouth or whatever. The drooling is throughout the whole process but they only cum once.
BulbasaurNoLikeCardio
18:18
do it they are like 2 for $5
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