# Dilution

*Corporate Finance & M&A — Finicade finance glossary*

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.

**Also known as:** shareholder dilution, equity dilution

**Related terms:** [Diluted EPS](https://finicade.com/glossary/diluted-eps), [Share Buyback](https://finicade.com/glossary/share-buyback), [Rights Issue](https://finicade.com/glossary/rights-issue), [Restricted Stock Units (RSUs)](https://finicade.com/glossary/restricted-stock-units), [Convertible Bond](https://finicade.com/glossary/convertible-bond)

Source: https://finicade.com/glossary/dilution