potentially dilutive securities

potentially dilutive securities definition - finance
Stock options, convertible preferred stocks, or bonds that potentially can be converted to common stock and therefore may dilute current shareholdersÂ’ earnings at some point in the future. The dilution would occur because earnings have to be spread among a greater number of stock shares.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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