An "anti-dilution provision" is a provision in an stock investment contract or company charter document designed to protect an investor from a reduction in ownership in a company in the event of a stock split, issuance of additional stock or other such measures. Anti-dilution provisions are common in the terms of preferred stock received by venture capital investors. Anti-dilution provisions can just cover stock splits and stock dividends, or can go farther and try to address protection in the event of the issuance of additional shares of a stock at a price less than the price paid by the original investor. Venture capital investors typically seek "weighted average anti-dilution clauses" but sometimes insist on "ratchet clauses." Ratchet clauses are harshest from the company's perspective.