Meaning DILUTION PROTECTION: Standard provision that changes the conversion ratio in the case of a stock dividend or extraordinary distribution to avoid dilution of a convertible bondholder's potential equity position. Adjustment usually requires a split or stock dividend in excess of 5% or issuance of stock below book value
More terms such as Dilution protection in Dictionary D.
- Definition Death Valley Curve:
- Examples In venture capital, refers to the period before a new company starts generating revenues, when it is difficult for the company to raise money dilution protection definition.
- Definition Debt Displacement:
- Examples The amount of borrowing that leasing displaces. Firms that do a lot of leasing are curtailed in their debt capacity dilution protection explain.
- Definition Default Risk:
- Examples The risk that an issuer of a bond may be unable to make timely principal and interest payments. Also referred to as credit risk (as gauged by commercial rating companies dilution protection what is.
- Definition Down Round:
- Examples Refers to a round of venture capital financing that is raised at a lower firm valuation than the previous round dilution protection meaning.
- Definition Deep-Discount Bond:
- Examples A bond issued with a very low coupon or no coupon that sell at a price far below par value. A bond that has no coupon is called a zero-coupon bond dilution protection abbreviation.