Broad-Based Weighted Average

Broad-Based Weighted Average

An anti-dilution provision in which a company makes a new issue and gives or sells all stockholders new shares so that they maintain the same percentage of ownership in the company. Importantly, preferred stockholders are allowed to take advantage of the new issue. This differs from other anti-dilution provisions that consider common stockholders, but not preferred stockholders. However, this average is not as commonly used as some other anti-dilution provisions.
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65 per share, subject to a broad-based weighted average ratchet anti-dilution adjustments in the event of issuance of equity-related securities at a lower price, subject to certain exceptions.
Anti-Dilution Financial Models in Excel that provide plug and play models that have step-by-step instructions how to use and are a way to show your clients the value of what you are proposing (models include weighted average anti-dilution, broad-based weighted average anti-dilution, narrow-based weighted average anti-dilution, full ratchet anti-dilution, and stock split adjustment)