meaning of antidilution clause

antidilution clause meaning in Law Dictionary

rule that stops a strong from giving even more stock without letting stockholders purchasing the new shares first. Its done maintain stockholders percentage of ownership undamaged.

antidilution clause meaning in Business Dictionary

Provision inside articles of connection (or bylaws) of a firm that prevents the company from issuing additional stock (shares) without initially offering the current stockholders (shareholders) the option to buy the brand new stocks. The goal of this term would be to provide the present stockholders to be able to keep their original portion of this company's ownership.