Full Ratchet Complete Guide to Anti-Dilution Provisions
1201 reads · Last updated: January 30, 2026
A full ratchet is a contractual provision designed to protect the interests of early investors. Specifically, it is an anti-dilution provision that applies, for any shares of common stock sold by a company after the issuing of an option (or convertible security), the lowest sale price as the adjusted option price or conversion ratio for existing shareholders.
