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Corporate Finance & M&A

Dilution

Also called: shareholder dilution, equity dilution

Dilution is your ownership percentage falling because the company issued more shares. It isn't automatically bad — capital raised at a good price can grow the pie faster than your slice shrinks — but it is always a transfer. The steady kind matters most: technology companies issuing 2–4% of shares a year in employee compensation quietly hand over a meaningful stake each decade.

Want more than a definition? Learn it in Capital Quarters →

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