Dilution

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Updated: Aug 20, 2021

The reduction in value of individual shares, ownership percentages, voting strength, and earnings per share caused by the issue of additional common stock by a company. The additional stock can result from a rights issue, a secondary market offering, the exercise of stock options, or by turning convertible debentures, preference shares, or warrants into stock.

Reference: Oxford Press Dictonary of Economics, 5th edt.



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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.