Dilution

The reduction in existing shareholders' ownership and earnings per share when a company issues new shares.

Appears in these guides

BuybacksStocks & Shares
Common StockStocks & Shares
IPOsStocks & Shares
Outstanding SharesStocks & Shares
Secondary OfferingsStocks & Shares
The Income StatementFundamental Analysis

Related lessons

Dividends

The income side of owning shares: what dividends are, how dividend yield and the payout ratio work, the key dates (declaration, ex-dividend, record, payment), why reinvesting them supercharges compounding, the difference between growth and income investing, and why dividends are never guaranteed.

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Dilution

Appears in these guides

Related terms

Related lessons

Dividends

Dilution

Appears in these guides

Related terms

Related lessons

Dividends