antidilutive

Antidilution Clause

1. In common and preferred stock, the right of a shareholder to maintain the same percentage of ownership in a company, should the company issue more stock. This protects the investor from devaluation of his/her shares if the company decides to hold a round of financing. In preferred stock, the anti-dilution clause also indicates the right of a shareholder to purchase more shares in a new round of financing at the offering price up to his/her previous percentage of ownership. Most U.S. states only recognize the anti-dilution clause if it is made explicit in the corporation's charter.

2. In convertible securities, the right of a holder to maintain the same conversion ratio in the event of a stock split. For example, if a convertible bond may be exchanged for 100 shares of common stock and there is a 2-for-1 stock split, the same convertible bond can be exchanged for 200 shares. This protects the investor from devaluation of the conversion option.

antidilutive

Of or relating to the conversion of convertible securities into common stock when such conversion would result in an increase in diluted earnings per share or a decrease in diluted loss per share. For example, it is an antidilutive conversion if outstanding warrants are assumed to be exercised in order to acquire shares of common stock at a higher price than the market price of the stock. Such a conversion would result in an increase in diluted earnings per share. Conversions that would increase earnings per share or reduce loss per share are not generally used in calculating diluted earnings per share.
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0% Convertible Senior Subordinated Notes include antidilutive protection that, in the event of certain payments of common dividends, provides for an increase in the number of shares of common stock issuable upon conversion.
In that situation, the potential shares are antidilutive and not included in the company's EPS calculation.
The computation of diluted earnings per share does not assume exercise or issuance of shares that would have an antidilutive effect on earnings per share.
Antidilutive securities not included in diluted EPS.
Series A Cumulative Convertible Preferred Stock (3,389,876 and 3,390,913 shares of Preferred Stock convertible into common stock estimated to be 2,956,000 and 2,957,000 common shares for September 30, 2006 and 2005, respectively) and options to purchase 70,750 shares of ARI's common stock were excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2006, and for the three and nine months ended September 30, 2005, because the effect of their inclusion would be antidilutive.
7582 shares of common stock per $1,000 principal and include antidilutive protection that provides for an increase in the number of shares of common stock issuable upon conversion resulting from common stock dividends after a de minimis threshold.
The proposed statement's impact on EPS is limited to the reduced reported net income until the options no longer are antidilutive since the use of the Treasury stock method is unaffected by the proposed standard.
13) Weighted average shares outstanding 72,923,667 20,020,183 Diluted loss per share: Net loss before preferred stock dividends $(761) $(340) Less: Antidilutive effect of dividends and common stock equivalents -- 2,272 $(761) $(2,612) Loss per share- Diluted loss per share, as calculated $(0.
6700 shares of common stock per share of preferred stock and includes antidilutive protection that provides for an increase in the number of shares of common stock issuable upon conversion resulting from common stock dividends.
The number of common shares issuable upon conversion of the Note will be subject to proportional adjustment to reflect stock dividends, share splits, share consolidations, and other antidilutive events.
67 shares of common stock per share of preferred stock and also includes antidilutive protection that provides for an increase in the number of shares of common stock issuable upon conversion resulting from common stock dividends after a de minimis threshold.
The error was the result of mistakenly including the antidilutive effect of its convertible debentures in calculating fully diluted earnings per share.