Antidilution Provision

Antidilution Provision - The antidilution provision involves the current shareholders and allows them to have fractional ownership of the company they own shares in by purchasing a proportional number of future shares being issued within the common stock of the company. In American, most states only consider anitdilution provisions valid if the company's corporate charter outlines the details of how they are to be handled. This is also known as a subscription privilege, or right, as the shareholders have first rights to partaken in the future stocks, before they are issued on the public market.