The option for existing shareholders in some publicly-traded companies to exchange their shares for more shares in a new issue of stock where the newly issued stock is made at a lower price. For example, if one purchases shares for $60 per share and the company later makes a new issue at $20 per share, the shareholder may exchange the shares purchased at $60 for an equivalent amount in $20 shares. This will triple his/her number of shares. This is an anti-dilution provision.
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