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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6011 common stock per USD1,000 principal and include antidilutive protection that provides for an increase in common stock issuable upon conversion resulting from common stock dividends after a de minimis threshold.
The incremental number of shares is always a positive number--that is, the exercise of the TSM cannot be antidilutive.
In that situation, the potential shares are antidilutive and not included in the company's EPS calculation.
For the three and six months ended June 30, 2009, diluted net loss per share is based on the weighted average number of shares of common stock outstanding, because the impact of common stock equivalents is antidilutive.
But employee equity awards generally impact only the denominator of diluted EPS unless they are antidilutive (ASC 260-10-45-17).
Antidilutive securities not included in diluted EPS.
28, no shares will be included in the diluted earnings per share computation, as the effect would be antidilutive.
This method should be applied for all prior periods, including loss years in which the impact of the incremental shares is antidilutive.
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.
These shares were excluded due to their antidilutive effect.
Companies that have a discontinued operation, extraordinary item, or cumulative effect of a change in accounting principle are to use income from continuing operations as the "control number" in determining whether potential common shares are dilutive or antidilutive.
There were no antidilutive common stock equivalents outstanding during the quarter ended March 29, 2007.