™A company issuing 250,000 new shares on top of 1 million existing shares reduces an unchanged 10,000-share holding's share-count fraction from 1% to 0.8%.
Stocks
Dilution
A reduction in existing owners’ percentage interest when a company issues additional shares or equivalents.
Plain-English context
Put the definition to work.
Ownership dilution and EPS dilution are different effects. New capital can increase business value even while percentage ownership falls.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. SEC — Capital Raising Pathways