anti-dilution provisions
Anti-dilution provisions provide existing preferred shareholderswith an adjustment to the number of shares they hold (an increase) if the company raises money at a share price below the share price at which the existing preferred shareholders purchased their stock. Basically it is a form of insurance that if the company needs to raise additional money and can only do so at a lower price than that at which the existing shareholders purchased their stock, it will need to increase the number of shares of stock it grants to existing shareholders as compensation.