potential dilution

potential dilution definition - business

potential dilution

The decrease in the proportional equity position of a share of stock that will occur eventually if additional authorized shares are actually issued. This term generally refers to outstanding options and convertible securities likely to be exchanged for shares of common stock at a future time.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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