dilution protection investment & finance definition
A provision in an investment that is designed to protect existing shareholders from reduced earnings. Dilution occurs when earnings have to be spread among an increased number of shares.
Dilution
A watering down in the ownership stake represented by a single share of stock, usually as a result of the sale of additional shares.
Antidilution Provision - The antidilution provision involves the current shareholders and allows them to have fractional ownership of the company they own shares in by purchasing a proportional number of future shares being issued within the ...
Stock dilution is a general term that results from the issue of additional common shares by a company.
Claim dilution
Definition:
A decrease in the likelihood that one or more of a firm`s claimants will be fully repaid, including Time value of money considerations. ...
A dilution of ownership is a process that involves the decrease of the fractional ownership that is enjoyed by shareholders of a given company.
Dilution
Diminution in the proportion of income each share is entitled to when new shares are issued.
Dilution
A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities.
Dilutive Acquisition ...
Dilution (1) A decrease in the proportion of income to which each shareholder is entitled, (2) A decrease in the % ownership of individual shareholders.
Bloopers & Blunders: Value Dilution Caused By Acquisitions: AOL, CompuServe ...
DILUTION The undesirable but often unavoidable mixing of ore body and sterile surrounding rock during the mining process which effectively lowers the gold grade.
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 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: Reduction of the percentage ownership of the existing shareholders through the sale of more stock by the corporation.
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. A reduction in a shareholder's relative ownership percentage of a company or the company's earnings per share (EPS) as a result of the company's issuance of more shares.
DILUTION: Dilution is the effect on a company's earnings per share caused by the conversion of convertible securities or the issuance of additional shares of stock.
Antidilution Provisions
A clause in a shareholders agreement which prevents a company from issuing additional shares, without allowing the current shareholders the opportunity to participate in the offering.
Appropriation request ...
Tanking on dilution
Second-seeded oil tanker fleet operator General Maritime recently found itself in the unenviable position of having to sell off part of its fleet (and leasing the ships back) to pay down its debt load.
The greater the dilution, the greater the potential that the stock price per share will fall.
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...
Thus, the pricing equations for Call (Put) Warrants and ordinary Call (Put) Options differ by the dilution (antidilution) effect.
Conversion Features and Dilution Protection: If a bond is convertible, the indenture will specify the conversion ratio, the number of common shares into which it can be converted. Alternatively, it may specify the conversion price.
Another problem stock buybacks seek to cure is the dilution (too much stock on the open market) caused by too generous stock option plans. When stock options are exercised the number of outstanding shares increase.
Dilution (business term)
Earnings Momentum (finance term)
Net Income Per Share of Common Stock (business term)
Common Stock Equivalent (in accounting)
Earnings (in accounting)
Financial Highlight (in accounting)
Alpha (business term) ...
One of the advantages of the escape clause is that it prevents dilution of ownership if the acquiring company is not viewed as hostile.
This is just an indication but the effect of equity dilution may be overcome by increase in revenues, reduction in interest paid on these debentures etc.
Guide to start
Setting up a business ...
Their strategy is to continue expanding their resource base with the cash flow emanating from their Nichols Ranch Property, thereby avoiding share dilution by plowing cash in order to continue to expand their resource base.
Opto Circuits Management Call, Sep 24 2009. Why Opto's competitive advantage is sustainable? Why the recent equity dilution is EPS accretive? New developments and other strategic initiatives.
As Charlie Munger has pointed out, over long periods of time, the rate of return which an investor earns is likely to be very close to the total return on capital generated by a firm, adjusted for dilution in shares outstanding.
shares and lower earnings per diluted share, if the effects of the expansion or innovation produce a significantly higher net value for the company, the diluted per share value may actually be higher than the initial value before dilution.
However, in exchange for the benefit of the reduced interest payment, the value of shareholder's equity is reduced due to the expected dilution should the convertible bondholders convert their bonds into new shares.
This practice may cause harm to a fund's other investors because of the costs of trading to the fund as well as the dilution of profits.
A shareholder may exercise (purchase of shares) or sell his warrant in the market if it decides not to participate in the capital increase (or bond). The sale of these SBs can then compensate for its dilution in the capital.
Or a poison pill can allow all existing shareholders of the target company except the acquirers to buy additional shares at a bargain price. Such measures raise the cost of acquisition and cause dilution, hopefully deterring a takeover bid.
Secondly, a company may actively influence their EPS figures to achieve forecasted EPS values. This can be done through a variety of methods like sale of assets to boost revenues, buy-back or dilution of shares to prevent takeovers, ...
money flowing in and money flowing out (withdrawals, liquidations, redemptions); traders are constantly changing their minds (today they want to sell, tomorrow they want to buy); new companies are starting to trade on the exchanges (shares dilution); ...
a takeover, the rights would "flip over" and allow the current shareholder to purchase the unfriendly competitor's shares at a discount. If this tool is exercised, the number of shares held by the unfriendly competitors will realize dilution and ...
in bankruptcy cases because secured and unsecured creditors are paid from the company's assets before common stockholders. And in situations where shareholders do participate in the plan, their shares are usually subject to substantial dilution.
for example options, the holder cannot actually exercise that right today. However, since many companies continually issue new options and these are converted over time, fully diluted earnings calculations help account for that future dilution.
 See also: Share, Stock, Shares, Market, Investment
  
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