Broad-based Weighted Average

Broad-based Weighted Average is an anti-dilution method that adjusts the price per share of the preferred stock of a prior investor due to the issuance of new preferred shares. The prior investor’s preferred stock is adjusted at a weighted average rate of the previously issued stock and the new preferred shares. This method uses all common stock outstanding on a fully diluted basis (including all convertible securities, warrants and options) in determining the new weighted average price.


Startup Law doesn’t have to be a confusing maze. The practical knowledge in "Acceleration: What All Entrepreneurs Must Know About Startup Law" will help you make the smart decisions to protect your startup and its future. Available in ebook and hardcover.

Buy the Book on Amazon