- (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. American Banker Glossary————Diminution in the proportion of income to which each share> is entitled. Bloomberg Financial Dictionary————A general phrase, describing the fact that as more shares are issued by a company, the interests of existing shareholders will be diminished. The specific impact is that the earnings per share of the company may be reduced as a result of the increased number of shares. A more specific meaning is used in the context of fully diluted earnings per share. Dresdner Kleinwort Wasserstein financial glossary————The diminution in the proportion of income to which each share is entitled. Exchange Handbook Glossary————Effect on earnings per share and book value per share if all convertible securities were converted and all warrants and stock options were exercised. NYSE Euronext Glossary
* * *dilute di‧lute [daɪˈluːt] verb [transitive]FINANCE if a company dilutes its shares or the earnings on its shares, it increases the number of its shares that are available and so reduces the amount that each share will earn:
• They issued new shares which diluted the equity of the current shareholders.
• $900 million equity infusion could dilute earnings by 10% next year.— dilution noun [uncountable] :
• The conversion of loan stock will give the new investors 58% of the ordinary share capital, representing a substantial dilution of equity.
* * *Reduction in the value of earnings and assets to existing holders of a company's shares caused by an increase in issued shares, which occurs when a rights or a bonus issue is made. In the US, fully diluted earnings per share are earnings after assuming the exercise of warrants and stock options and the conversion of convertible bonds and preferred stock.
* * *dilution UK US /daɪˈluːʃən/ US /dɪˈluːʃən/ noun [U]► the process or action of making something less strong or valuable: »
The destroyer of brand integrity is ""brand dilution"", which is the perverse reward for popularity.► FINANCE the process or action of making a company's shares less valuable by making more shares available: »
The company is working to prevent dilution resulting from stock splits or similar transactions.
Financial and business terms. 2012.
Look at other dictionaries:
dilution — [ dilysjɔ̃ ] n. f. • 1833; lat. dilutio → diluer ♦ Action de diluer; son résultat. La dilution d un sel dans l eau. Faible, forte dilution. Dilution et trituration, les deux modes de préparation homéopathique. ● dilution nom féminin (bas latin… … Encyclopédie Universelle
Dilution — may refer to: Reducing the concentration of a chemical Serial dilution, a common way of going about this reduction of concentration Homeopathic dilution Dilution (equation), an equation to calculate the rate a gas dilutes Trademark dilution, a… … Wikipedia
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 — Di*lu tion, n. [Cf. F. dilution.] The act of diluting, or the state of being diluted. Arbuthnot. [1913 Webster] … The Collaborative International Dictionary of English
dilution — 1640s, noun of action from dilut , pp. stem of L. diluere (see DILUTE (Cf. dilute)) … Etymology dictionary
dilution — [dilo͞o′shən, dīlo͞o′shən] n. 1. a diluting or being diluted 2. something diluted … English World dictionary
Dilution — Pour les articles homonymes, voir Dilution (homonymie). Grenadine à différentes dilutions La dilution est un procédé consistant à obtenir une solution finale de concentration inférieure … Wikipédia en Français
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 — praskiedimas statusas T sritis Standartizacija ir metrologija apibrėžtis Tirpalo koncentracijos sumažinimas tirpikliu ar skiedikliu. atitikmenys: angl. dilution; thinning vok. Verdünnen, n; Verdünnung, f rus. разбавление, n; разведение, n pranc.… … Penkiakalbis aiškinamasis metrologijos terminų žodynas
dilution — praskiedimas statusas T sritis fizika atitikmenys: angl. dilution vok. Verdünnung, f; Verwässerung, f rus. разбавление, n pranc. dilution, f … Fizikos terminų žodynas