Business Terms Glossary

Dilution

Definition of Dilution

Dilution is a reduction in the percentage ownership of a given shareholder in a company caused by the issuance of new shares.

Every entrepreneur should take the time to understand dilution thoroughly before raising business financing.

Dilution References On This Site

These Gaebler.com articles mention this glossary term:

  • Phantom Stock and Stock Appreciation Rights - Phantom stocks and SARs are a great way for a company to reward employees for the performance of the firm even if they face obstacles toward awarding stock in the traditional manner or have concerns regarding dilution perfect tools for the entrepreneur of a young company...
  • Understanding Dilution - There are different types of dilution and not all forms of it affect equity positions...
  • How Equity Dilution Works - Understand stock dilution before you sign your employment agreement and you'll...
  • How Equity Dilution Works - Understand stock dilution before you sign your employment agreement and you'll...
  • Phantom Stock and Stock Appreciation Rights - Phantom stocks and SARs are a great way for a company to reward employees for the performance of the firm even if they face obstacles toward awarding stock in the traditional manner or have concerns regarding dilution perfect tools for the entrepreneur of a young company...
  • Understanding Dilution - There are different types of dilution and not all forms of it affect equity positions...

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary