Investment Glossary · Quick read · No ads
Dilution
The short answer
A reduction in existing shareholders' percentage of ownership when new shares are issued or convertible securities are exercised.
What is Dilution?
A reduction in existing shareholders' percentage of ownership when new shares are issued or convertible securities are exercised.
About this page. Written by Associate Professor Charles Lo, CPA, PhD. Checked against reliable sources before publication. No ads and no paywall. Editorial standards · How we fact check · Corrections log · Report an error
Educational information only. Nothing on this page is personal financial, tax or legal advice. Investing involves risk, including the possible loss of principal.
