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Dilution

Business DifferentiationDilution protection

Dilution
Dilution is the reduction of fractional ownership of each of a company's existing shareholders by the issuance of additional shares.

 


Dilution Protection
Dilution Protection definition :
Standard provision that changes the conversion ratio in the case of a stock dividend or extraordinary distribution to avoid dilution of a convertible bondholder's potential equity position.

Dilution
An increase in the number of shares of a company's stock, causing the value of each share to decrease.

Dilution (Percent)
A decrease in the equity of a share of stock due to additional shares being issued.
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Dilution also generally occurs every time a company issues shares. When your company issues new shares your earnings might be diluted but your book value will actually often be increased (anti-diluted).

dilution
decrease, loss, or weakening of a financial statement-related item. For example, if more common shares are issued, the equity interest represented by each common share is reduced.

dilution
For a given company income, if the number of shares increases (through a capital increase, or payment of dividend in shares), the net income per share decreases. This is called dilution.
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Brand dilution
Brand dilution is the weakening of a brand though its overuse. This frequently happens as a result of ill-judged brand extension. Price cutting that increases volumes but moves a brand down-market can be similarly damage a brand.

DILUTION RATE - Dilution as a percentage of gross sales.
DILUTIVE EFFECT - Result of a transaction that decreases earnings per common share (EPS).
DIME - a 1O-cent coin, valued at one-tenth of a U.S. dollar.

Dilution. Dilution from an accounting perspective is the net difference between the purchase price per share paid by a new investor to buy a security from the company and the tangible book value per share of the company prior to the offering.

Dilution: Reducing the actual or potential earnings per share by issuing more shares or giving options to obtain them.
Discount: The amount by which a bond sells on the secondary market at less than its par value or face value.

Dilution levy
A charge levied by the ACD (Authorised Corporate Director) of an ICVC (Investment Company with Variable Capital) to be made for the purposes of reducing the effects of dilution.
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Dilution levy
A charge that fund managers can choose to apply to cover any dealing or other costs they may incur when buying or selling units in their fund.

Dilution
Dilution is the reduction in proportional ownership that results when a corporation issues additional common shares to the public.
Dilutive securities ...

Dilution
Effect on earnings per share and book value per share if all convertible securities were converted and all warrants and stock options were exercised.

dilution
(1) The difference between gross sales and net sales. Dilution is caused by sales that are reversed as a result of returns and/or allowances.

Dilution
Dilution occurs when a company issues additional shares of stock, and as a result the earnings per share and the book value per share decline.

Dilution protection
Standard provision that changes the conversion ratio in the case of a stock dividend or extraordinary distribution to avoid dilution of a convertible bondholder's potential equity position.

dilution: The impact of a transaction that reduces a company's earnings per share.
director: A corporate board member elected by shareholders.
director: An individual elected by fundholders to oversee the fund's management.

Dilution (1) A decrease in the proportion of income to which each shareholder is entitled, (2) A decrease in the % ownership of individual shareholders.

Dilution
Diminution in the proportion of income to which each share is entitled.
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Dilution: Reduction of the percentage ownership of the existing shareholders through the sale of more stock by the corporation.

Dilution Rate - The ratio of water-to-chemical of a mixed solution (e.g. 6 oz. chemical to 55 gal. water).

Dilution - Reduction in earnings per share of a common stock that occurs when a company issues additional shares.

Dilution - The reduction, weakening, or decrease in a item. For example, share values are diluted with the issue of more common shares.

Antidilution Provisions
A clause in a shareholders agreement preventing a company from issuing additional shares, ...

Claim Dilution
A decrease in the likelihood that one or more of a firm's claimants will be fully repaid, including time value of money considerations.
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Dilution
The effect on book value per share and earnings per share if all stock options or warrants are exercised or all convertible securities are converted.
See: Convertible Securities; Warrant ...

Dilution: The change in earnings per share or book value per share, resulting from the sale of additional shares.
Discount: The amount by which a bond is priced below its par value (face value). (See premium.) ...

Dilution can be caused by a change in the financial structure of a company, in particular, following a financial operation, ...

Dilution protection
Mainly applies to convertible securities. Standard provision whereby the conversion ratio is changed accordingly in the case of a stock dividend or extraordinary distribution to avoid dilution of a convertible bondholders ...

Dilution
If a company issues new stock, the earnings per share and the book value per share decline.

Dilution, Economic. A decrease in an enterprise's share or asset values that occurs when new shares are added without a corresponding increase in the productiveness of the capital assets or net profits of that enterprise.

Dilution
Phénomène lié à l'émission d'actions ou à l'octroi d'options de souscription à des actions et dont l'effet est une diminution du bénéfice par action réel ou possible.
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Share dilution
"When new shares are issued to fund a takeover deal or raise money, increasing the number of shares and decreasing individual share value."
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An anti-dilution provision used to ensure that investors are not penalized when companies are undergoing additional financing or issuing new shares.

City code on takeovers and mergersSee: Dawn raid Claim dilutionA decrease in the likelihood that one or more of a firm's claimants will be fully repaid, including time value of money considerations.

Certificateless municipals that can be registered on stock exchanges and are listed in newspapers. City code on takeovers and mergers
See: Dawn raid
Claim dilution ...

antidilution provision A provision in an option or a convertible security which protects an investor... antidilutive Term used to describe a convertible security which could increase a corporation's...

See related: Dilution, Net Income, Share repurchase, Shares outstanding.
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Dilution
The change in earnings per share or book value per share that would result if all warrants and stock options were exercised and all converti...(Read more)
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Retail investors began participating in the stock markets in a small way with the dilution of the FERA in 1978. The next big boom and mass participation by retail investors happened in 1980, with the entry of Mr. Dhirubhai Ambani.

The BOND which bears a certain coupon enables the issuing company to economize on interest cost by tapping foreign markets and also to postpone a DILUTION in the EARNINGS PER SHARE.

Dilution When company shares increase in quantity, causing the value of each share to decrease. Director Person elected by shareholders to serve on the board of directors. Discount How much a security sells below its par value.

Companies with dilutive securities take the potential effect of dilution into consideration in calculating Diluted EPS. These calculations require a series of assumptions about dilutive securities being converted into common stock.

[edit] New share issues and dilution
The issue of more shares does not necessarily decrease the value of the current owner.

Related: full price Dilution Diminution in the proportion of income to which each share is entitled. Dilutive effect Result of a transaction that decreases earnings per common share.

Convertibles routinely have an anti-dilution provision, which adjusts the conversion ratio as appropriate in the event of a stock split or stock dividend. Some convertibles have a conversion ratio that changes according to a fixed schedule.

agency bankruptcy basis capital restrictions commodity compliance concentration conversion convexity corporate counterparty country coupon credit credit rating currency default dilution disaster duration environmental event exercise force majeure ...

of the reasons that share issues tend to weaken share prices is because the dilution effects of issuing new shares are worsened by the current system of corporation tax.

Law of dilution
Law of Diminishing Marginal Returns
Law of diminishing marginal utility
Law of diminishing marginal utility
Law of Diminishing Ninjas
law of diminishing returns
law of diminishing returns
law of diminishing returns ...

Note, too, that because it's expressed on a per-share basis, equity growth per share takes into account dilution from new-share issuances.

See: Convertible Bond; Convertible Debenture; Convertible Preferred Stock; Convertible Securities; Dilution; Right; Warrant
Common Stock Fund
A mutual fund that invests almost entirely in common stocks, although their objectives may vary greatly.

In the UK, they were often issued by family companies, to avoid dilution of family control. However, the trend here has been to enfranchise all shareholders, so these shares are now very rare.

When any new shares are issued, the stock of existing employees will become diluted. This dilution will be measured against the motivation and tax benefits of the ESOP.

When the corporation later goes public, the founders accept a dilution of control because they value the additional capital and because they expect to continue to control a majority of votes on the board and thus to direct the company's future ...

Type of convertible (to common stock) bond or preferred stock issued by a distressed company where the conversion ratio increases as the market price of the common stock drops. As the common drops because of potential and actual dilution, ...

A right usually has a life of 2 to 4 weeks, is transferable, and entitles the holder to buy the new common stock below the Public Offering Price. Rights are often granted to protect existing shareholders from the effects of dilution.

This is also known as a Scrip Issue, Bonus Issue, Free Issue or a Stock Dividend. It also has the effect of increasing the number of shares in the market and therefore reducing the price of those shares (share price dilution).

This transaction can take place over a period of several weeks. Reverse mergers come with several benefits but most important, they allow private companies to become public through an IPO, with less stock dilution, and at a lesser cost.

See also: Expense, Banks, Saving, Values, Bills

Business DifferentiationDilution protection

 
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