full ratchet

Definition

In venture capital, an investor protection provision which specifies that options and convertible securities may be exercised relative to the lowest price at which securities were issued since the issuance of the option or convertible security. The full ratchet guarantee prevents dilution, since the proportionate ownership would stay the same as when the investment was initially made.

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full ratchet is ...

... part of the Options, Stocks and Venture Capital subjects.

Nearby Terms

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