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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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