Frequently asked questions
What does no dilution mean?
No dilution means that an investor`s ownership percentage in a company remains unchanged, even when new shares are issued.
What is the difference between dilution and nondilution shares?
Dilution shares are subject to a reduction in ownership percentage when new shares are issued, while non-dilution shares are protected from this reduction.
Why are anti-dilution provisions important?
Anti-dilution provisions are important because they protect investors` ownership interests and ensure that their investment value is not diminished by future share issuances.
Benefits
Non-dilution provisions protect investor interests, maintain ownership percentages, and ensure investment value is preserved in future financing rounds.