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Dilution

• Diminution in the proportion of income to which each share is entitled.

• A reduction in Earnings Per Share of common stock. Dilution occurs through the issuance of additional shares of common stock or the conversion of convertible securities. Dilution reduces earnings per share by increasing the number of shares potentially outstanding.

 
 Embedded terms in definition
 Common stock
Conversion
Convertible
Earnings per share
Earnings
Income
Securities
Shares
Share
Stock
 
 Related Terms
 Claim dilution
Dilution of ownership
Potential dilution

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