Weighted Average Anti-Dilution Protection is a right that gives holders of preferred stock the right to increase the rate at which their shares convert to common stock in case the company issues shares to third parties at a lower price per share than was paid for the preferred stock. Unlike full-ratchet anti-dilution protection, when using weighted-average anti-dilution protection the conversion rate for the preferred stock is only increased to be a fraction of what the new, lower-price stock was sold at, which ratio is based on a number of factors depending on whether the company has implemented broad-based weighted average anti-dilution protection or narrow-based weighted average anti-dilution protection for its preferred stockholders.