Share Dilution
/ˈʃɛr dɪˌluːʃən/
Definitions
- (n.) The reduction in existing shareholders' ownership percentage due to the issuance of additional shares.
The company’s new stock issuance caused significant share dilution for early investors.
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Commentary
Share dilution commonly arises in corporate finance during new equity issuances and can affect shareholder control and value.
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