Narrow-based Weighted Average Anti-Dilution Protection
Narrow-Based Weighted Average Anti-Dilution Protection is anti-dilution protection that takes into account only the total number of outstanding preferred stock for determining the new weighted average price for the old shares, in contrast to broad-Based weighted average anti-dilution protection which takes into account all equity previously issued and being issued in the transaction in question. It is generally considered investor-friendly (though not as investor-friendly as Full Ratched Anti-Dilution Protection).