alleryStart learning →Anti-dilution provisions in venture contracts favour whom?
AOption holders
BBank lenders
CEarly investors
DTax auditors
Answer & Solution
Correct answer: C. Early investors
Anti-dilution clauses protect the stake of the early equity investors when more shares are issued later.
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Related questions
Opening shares 1,00,000; on 1 October 30,000 more issued for cash. Weighted shares, March EPS from continuing operations uses which numerator?How can a firm offset the dilution from employee options?1,000 shares trade at Rs 20 and 250 new shares are issued at Rs 12. Theoretical diluted prWhich event can dilute existing owners' holdings?A larger share count lowering profit for each share is called what?What does stock dilution reduce?An over-subscription privilege lets an investor do what?