dilution

Definition

The change in earnings per share or book value per share that would result if all warrants and stock options were exercised and all convertible securities were converted.

Use dilution in a sentence

The dilution was an improvement as the fluctuation of the stock's value imparted negative sentiment due to all the volatility.

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After they had converted everything in the business, a dramatic dilution of earnings was the fate that greeted them and they were not sure how to proceed.

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When my company fired its CEO, it agreed to pay him a large cash payment so that he would not exercise all his stock options at once and the resulting dilution harmed our earnings.

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antidilution provision full ratchet