dilution

di·lu·tion   (dī-lōō'shən, dĭ-)    n.   The process of making weaker or less concentrated. A dilute or weakened condition. A diluted substance. A decrease in the equity position of a share of stock because of the issuance of additional shares.

Dilution

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

Investopedia Commentary

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

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Stock Basics Tutorial
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See also: Anti-dilution Provision, Diluted EPS, Full Ratchet, Outstanding Shares

dilution

A decrease in the equity position of a share of stock because of the issuance of additional shares. Dilution is usually detrimental to the position of existing shareholders because it weakens their proportional claim on earnings and assets. See also potential dilution.

Main Entry: di·lu·tion
Pronunciation: dI-'lü-sh&n, d&-
Function: noun
1 : a lessening of real value (as of equity) by a decrease in relative worth; specifically : a decrease of the value per share of common stock caused by an increase in the total number of shares
2 : a lessening of the value of a trademark that is caused by use of the mark by another and that creates potential confusion on the part of the consumer
3 : a weakening of the voting rights of a group of citizens (as a minority) because the representatives they elect have no greater legislative power than the representatives elected by smaller voting groups

Main Entry: di·lu·tion
Pronunciation: dI-'lü-sh&n, d&-
Function: noun
1 : the action of diluting : the state ofbeing diluted
2 : something (as a solution) that is diluted

dilution di·lu·tion (dī-l&oomacr;'shən, dĭ-)
n.

1. The act of reducing the concentration of a mixture or solution.

2. A diluted solution.

dilution   (dĭ-l'shən)  Pronunciation Key  The process of making a substance less concentrated by adding a solvent, such as water.