Dilution, also called shareholder dilution or sometimes equity dilution, is the phenomenon that causes owners of a company's equity shares (stock) to lose a proportionate percentage of ownership value ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

A full ratchet is an anti-dilution provision that adjusts the option price or conversion ratio for shareholders to the lowest sale price. This prevents ownership dilution for early investors in ...