What is 'Narrow-Based Weighted Average'

An anti-dilution provision used to ensure that investors are not penalized when companies are undergoing additional financing or issuing new shares. A narrow-based weighted average takes into account only the total number of outstanding preferred shares for determining the new weighted average price for the old shares.

Explaining 'Narrow-Based Weighted Average'

The new weighted average price is adjusted for the preferred shareholder, thus providing protection against dilution. The narrow-based method is the most favorable for investors, as it lowers the price of the preferred shares more than other methods.

Further Reading

A second-best evaluation of eight policy instruments to reduce carbon emissions
www.sciencedirect.com [PDF]
… with a stiffness of 13.13 kN/m and a linear relationship between weight applied and … Narrow-based walking condition and compliant walking surface significantly increased step length variability in both … For older people, the weighting of the vestibular input for head control was …

Fiscal policy, conflict, and reconstruction in Burundi and Rwanda
www.econstor.eu [PDF]
… with a stiffness of 13.13 kN/m and a linear relationship between weight applied and … Narrow-based walking condition and compliant walking surface significantly increased step length variability in both … For older people, the weighting of the vestibular input for head control was …

Understanding price-based antidilution protection: Five principles to apply when negotiating a down-round financing
heinonline.org [PDF]
… with a stiffness of 13.13 kN/m and a linear relationship between weight applied and … Narrow-based walking condition and compliant walking surface significantly increased step length variability in both … For older people, the weighting of the vestibular input for head control was …

Anti-Dilution Provisions
heinonline.org [PDF]
… with a stiffness of 13.13 kN/m and a linear relationship between weight applied and … Narrow-based walking condition and compliant walking surface significantly increased step length variability in both … For older people, the weighting of the vestibular input for head control was …

Tax system reform in India: Achievements and challenges ahead
www.sciencedirect.com [PDF]
… with a stiffness of 13.13 kN/m and a linear relationship between weight applied and … Narrow-based walking condition and compliant walking surface significantly increased step length variability in both … For older people, the weighting of the vestibular input for head control was …