Question

Q5.
Securities which protect shareholders from dilution are called as ............securities
(A)
anti-dilutive
(B)
dilutive
(C)
new
(D)
old​

Answer 1

Answer:

(A) Anti-dilutive

Explanation:

Anti-dilution acts as a cap, preventing shares from being diluted past a certain point. Essentially, anti-dilution works to protect shareholders from future rounds of funding where the price per share is lower than the original price an investor paid, also known as a down round.