Inicio >  Blossary: Finance Investment  >  Term: Weighted Average
Weighted Average

A form of antidilution protection that adjusts the conversion price or the amount of securities into which a convertible security converts when a subsequent offering of securities (common stock or preferred stock) is made at a lower price. Unlike full ratchet antidilution provisions, the weighted average price protection is affected by the size or amount of the subsequent issuance to reflect the actual adverse impact incurred by the security holder. The conversion price is reduced by applying a complicated formula based on the shares outstanding prior to the new issue of securities and the current conversion price, and the amount of money received by the issuer divided by the number of fully diluted shares of common stock outstanding after the new issue.

0 0

Finance & Investment

Categoría: Business

Cantidad total de términos: 319

Creador

  • kirb
  •  (Bronze) 304 puntos
  • 100% positive feedback
© 2024 CSOFT International, Ltd.