Dilution

What Does Dilution Mean?
A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities.

Investopedia explains Dilution
Adding to the number of shares outstanding reduces the value of holdings of existing shareholders.

Related Terms

Anti-Dilution Provision
Convertible Preferred Stock
Convertibles
Diluted Earning Per Share - Diluted EPS
Employee Stock Option - ESO
Full Ratchet
Open Offer
Outstanding Shares
Secondary Offering
Wash-Out Round
More Related Terms

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What is dilutive stock?
Why do share prices fall after a company has a secondary offering?
What is an evergreen provision and how does it affect shareholders?

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