dilution of equity

Related Overviews


More Like This

Show all results sharing this subject:

  • Financial Institutions and Services


Quick Reference

An increase in the number of ordinary shares in a company without a corresponding increase in its assets or profitability. The result is a fall in the value of the shares and lower dividends. The percentage of the equity held by each existing shareholder (and hence his or her voting power) will likewise be reduced. See also stock watering.

Subjects: Financial Institutions and Services.

Reference entries