- a diluting or being diluted
- something diluted
- a. The process of making weaker or less concentrated.b. A dilute or weakened condition.
- A diluted substance.
- A decrease in the equity position of a share of stock because of the issuance of additional shares.
dilution - Investment & Finance Definition
A ubiquitous term that refers to a decrease in an investor’s ownership level or a company’s market value, book value, or earnings per share. Ownership levels are diluted when additional shares are sold and existing shareholders don’t buy the shares. An increase in the shares outstanding also dilutes a company’s book value and earnings per share. Often, merger transactions are said to be dilutive to current shareholders.
dilution - Legal Definition
- Diminution or weakening of a shareholder’s interest in a company by the issuance of more shares to other shareholders.
- Of a trademark, by its use as a term of general description or in other derogatory or unauthorized ways.
- Of the voting rights of a particular party or group by reapportionment of one or more legislative districts (see gerrymandering).