I quote: A diva, mostly from urban cities and ghettos, that has reasons to believe. “This is so ratchet” specifically means the situation is crappy, probably poorly planned, and is all around bad, or rough. According to the Urban Dictionary, this term is used to refer to a female. Just as fair warning, this word can be a racial stereotype, as if you use it all over place without care, you’re likely to insult someone and provoke them, whether from the blatant insult that inherently comes with calling someone ratchet, or the fact that you used it in an inappropriate situation. Once a ratcheteer has identified and brought his ratchet back from the club for an 'afterparty' he seeks out four specific environments for mating: 1. It’s used to refer to someone, often a girl, who looks bad, sometimes obese, very poor, and scraggly looking in general. As urban dictionary says (a dictionary for slang words you won’t find in a proper dictionary), It comes from “A ghetto-dialect mispronunciation of the English term "wretched".” Random House Unabridged Dictionary, Copyright. He would have the right to convert his existing shares to $8 per share, thereby increasing his number of shares by 25% and maintaining 20% ownership.Ratchet is a recent slang word that started in the US. by up or down): to ratchet prices up Interest rates have been ratcheting downward. The Urban Dictionary defines someone who embodies 'ratchetness. That boy is so ratchet he came out at the club with the same clothes he had. It is most often used to refer to a ghetto diva who is a gross looking and/or behaving person. According to Urban Dictionary, thot is a phrase used to describe girls in. Usually, as a result of the implementation of a ratchet, those who own a fixed number of common shares suffer significant dilution.įor example, if a manager/investor had previously paid $10 per share for a 20% stake in the firm, he would then get more shares to maintain his percentage ownership in the firm if it were to issue new shares at the rate of $8 per share. Just because someone gets upset at another person, or gives them a piece of his or her mind, it doesn't mean that person is ratchet. The term is the urbanized version of wretched. When a ratchet is created, it is essential to limit the maximum entitlement of the managers by linking the amount payable to a maximum participation percentage. A ratchet requires clear determination of the triggering event and the date and form of payment. This is achieved by means of an anti-dilution clause, which protects the investor from a reduction in percentage ownership in a firm due to future issuance of additional stock to other entities by the firm. When a firm raises new equity capital, the existing managers/investors have the option of retaining the original proportionate ownership in the firm.