Recent Examples of dilution from the Web
The AfD’s rise also threatens the CSU’s longtime majority in Bavaria, potentially forcing the latter into a coalition with a centrist partner that could lead to a further dilution of the CSU’s conservative profile.
Even one of the most unapologetically confrontational feminist achievements of the 90s, the Riot Grrrl movement, ends with the dilution of its core message.
The court has explained that vote dilution occurs when mapmakers limit a minority group’s ability to translate its voting strength into voting power, drawing district lines to ensure that white voters can select its preferred candidate.
Issuing new equity typically leads to dilution for existing shareholders—but not Musk.
The company is considering selling about 10 percent of the company, the minimum required under Hong Kong exchange rules, to avoid dilution, said one of the people, who asked not to be named because the matter is private.
Alleging that producers pre-scripted a fabricated controversy and steered her towards that romper, Dickinson is claiming a false endorsement under the Lanham Act, dilution of her marks (really, her name and image), and unfair competition.
Use the same dilution as your toothbrush soak to disinfect your kitchen cleaning tools.
If yes, try to make even more dilutions (for example, adding one drop to 10 cups of water, etcetera) and test if your nose is still able to pick up the odorants in these samples.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'dilution.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of DILUTION
What It Is
How It Works
Let's assume you own 100,000 shares of XYZ Company. The company has 1,000,000 shares outstanding, meaning that you own 10% of the company. Shares of XYZ Company are trading at $5, so the company's current market value is $5,000,000 and your investment is worth $500,000.
XYZ Company wants to build a new plant, so it issues 500,000 shares. Your 100,000 shares are now only 6.67% of the company (100,000/1,500,000 = 6.67%).
In the end, the dilution may be worth it if the plant makes XYZ Company more profitable. If however, the company issued those shares as part of an overly generous stock option program or to raise funds for projects that fail to contribute profit, the dilution may cause permanent damage to the value of your holding.
Why It Matters
Dilution is the act of dividing the proverbial pie into ever smaller pieces, and it is usually not well received by investors. Several events can cause dilution, particularly secondary offerings, the conversion of convertible securities, option exercises, and warrant exercises. On occasion, companies purchase their own shares on the open market to combat dilution. It is important to note stock splits do not usually create dilution, because in a stock split the investor receives additional shares to preserve his or her percentage ownership and investment value.
Although dilution most noticeably affects ownership percentages, earnings per share calculations also consider the effects of dilution. This is why most public companies report both basic and diluted earnings, whereby potentially dilutive securities are treated as if they were already converted to outstanding shares. This effectively increases the number of shares over which the company's earnings would be spread if all potentially dilutive securities were exercised.
In some companies, shareholders can protect themselves from dilution if they have the right to purchase shares in any of the company's future stock issuances. These anti-dilution provisions, also called subscription rights or preemptive rights, usually appear in a corporation's charter.
DILUTION Defined for Kids
Definition of dilution for Students
legal Definition of dilution
Seen and Heard
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