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Dilution of ownership

• Occurs when a new share issue results in each present shareholder having a claim on a smaller part of the firm's earnings than previously.

 
 Embedded terms in definition
 Earnings
Issue
Share
 
 Related Terms
 Claim dilution
Dilution
Employee stock ownership plan
Insider ownership
Institutional ownership
Potential dilution

<< Dilution Dilutive effect >>

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