equity dilution

equity dilution

Big dictionary of business and management. 2014.

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  • equity dilution — A reduction in the percentage of the equity owned by a shareholder as a result of a new issue of shares in the company, which rank equally with the existing voting shares …   Accounting dictionary

  • dilution — di·lu·tion /dī lü shən, də / n 1: a lessening of real value (as of equity) by a decrease in relative worth; specif: a decrease of the value per share of common stock caused by an increase in the total number of shares 2: a lessening of the value… …   Law dictionary

  • dilution limits — The limits to the number of shares a company may issue under its equity based incentive plans. The limits typically refer to an overall number of shares that may be issued at any given time, for example 10% of issued share capital over a ten year …   Law dictionary

  • 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. (2) The reduction in an existing stockholder s position that results from the issuance of new shares.… …   Financial and business terms

  • Dilution — Diminution in the proportion of income to which each share is entitled. The New York Times Financial Glossary * * * dilute di‧lute [daɪˈluːt] verb [transitive] FINANCE if a company dilutes its shares or the earnings on its shares, it increases… …   Financial and business terms

  • dilution of equity — 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 as a result of this dilution. The percentage of the equity held by an… …   Big dictionary of business and management

  • 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. Adjustment usually requires a split or stock dividend in …   Financial and business terms

  • dilution — A reduction in *value. In the case of *common stock, dilution refers to a reduction in the value of a *stockholder’s share of *equity or a reduction in the proportion of shares held by a stockholder. This can occur when a corporation issues… …   Auditor's dictionary

  • dilution — noun Date: 1646 1. the action of diluting ; the state of being diluted 2. something (as a solution) that is diluted 3. a lessening of real value (as of equity) by a decrease in relative worth; specifically a decrease of per share value of common… …   New Collegiate Dictionary

  • Stock dilution — is a general term that results from the issue of additional common shares by a company. This increase in common shares of a stock can result from a secondary market offering, employees exercising stock options, or by conversion of convertible… …   Wikipedia

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