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 Dumping:
- Examples In the context of general equities, offering large amounts of stock with little or no concern for price or market effect dilution protection.
- Definition Due Bill:
- Examples An instrument evidencing the obligation of a seller to deliver securities sold to the buyer. Occasionally used in the bill market dilution protection.
- Definition Default Premium:
- Examples A differential in promised yield that compensates the investor for the risk inherent in purchasing a corporate bond that entails some risk of default dilution protection.
- Definition Drop:
- Examples Refers to over-the-counter trading. Remove from O.T.C. trading list; hence, no longer making a market in a security dilution protection.
- Definition Drop-Dead Day:
- Examples The date on which a deadline is final, with no exceptions dilution protection.