GLOSSARY

Dilution

IN PLAIN ENGLISH

Your slice of a company getting smaller because new shares have been issued.

WHERE YOU MEET IT

Shows up as EPS growing more slowly than profit.

WATCH OUT FOR

Share-based pay dilutes a little every year; a big fundraise or share-funded deal dilutes a lot at once.

EXPLAINED IN

Earnings per share, and what dilutes it

Educational content only. It is not personal financial advice.