Broad-Based Weighted Average(redirected from 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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