Ratchet is a mechanism to prevent dilution. An anti-dilution clause is a contract clause that protects an investor from a reduction in percentage ownership in a company due to the future issuance by the company of additional shares to other entities.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). ratchet. Retrieved September 21, 2026, from http://smartdefine.org/ratchet/definitions/1161725 |
| Chicago | Barry Goldsmith. 2010. "ratchet" http://smartdefine.org/ratchet/definitions/1161725 (accessed September 21, 2026). |
| Harvard | Barry Goldsmith 2010, ratchet, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/ratchet/definitions/1161725>. |
| MLA | Barry Goldsmith. "ratchet" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/ratchet/definitions/1161725> |