Financial Education

Dilution

Reduction in ownership/share value due to new share issuance or options

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Fundamental

Dilution

Reduction in ownership/share value due to new share issuance or options

Definition

Dilution occurs when a company issues additional shares, reducing existing shareholders' ownership percentage and earnings per share. Common causes include equity financing, employee stock options, and convertible securities.

Related Topics

#ownership #share issuance #earnings per share #stock options

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Category: Fundamental

Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.

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