A type of pricing provision used with a stock's preferred shareholders that helps to ensure that these investors are protected against dilution when a company is either issuing new shares of stock or taking on additional financing. This method only uses the number of outstanding preferred stock shares when calculating the new weighted average price for the current or existing stock shares.
Related information about narrow based weighted average:
- What is weighted average anti-dilution protection? : Startup ...
Aug 4, 2007 ... Narrow-based weighted average formula ... There are variations on both the traditional broad-based and narrow-based weighted average ...
- Narrow-Based Weighted Average Definition | Investopedia
A narrow-based weighted average takes into account only the total number of outstanding preferred shares for determining the new weighted average price for ...
- VCHub.com | Anti Dilution – Narrow-based Weighted Average
Anti Dilution – Narrow-based Weighted Average. An in-the-middle version of anti dilution is narrow-based weighted average.
- Narrow-Based Weighted Average Ratchet | Glossary | VC Experts
A type of anti-dilution mechanism. A weighted average ratchet adjusts downward the price per share of the preferred stock of investor A due to the issuance of ...
- Term Sheet – Anti-Dilution
Mar 21, 2005... of the Series A Preferred will be subject to a [full ratchet / broad-based / narrow- based weighted average] adjustment to reduce dilution in the ...
- What is narrow based weighted average? definition and meaning
Definition of narrow based weighted average: A type of pricing provision used with a stock's preferred shareholders that helps to ensure that these investors are ...
- Narrow-Based Weighted Average: Definition from Answers.com
Narrow-Based Weighted Average An anti-dilution provision used to ensure that investors are not penalized when companies are undergoing additional.
- The Dilution Dilemma An Explanation of Ratchet Protection
Oct 3, 2005 ... For example, a Narrow Based Weighted Average Antidilution Price. Protection Provision might include only Common Stock and convertible ...