Share dilution is when a company issues additional stock, reducing the ownership proportion/percentage of a current shareholder. The dilution only impacts the voting rights and ownership percentage, while it does not affect the value of the share.
Percentage can be diluted through a conversion by holders of optionable securities, secondary offerings to raise additional capital, or offering new shares in exchange for acquisitions or services.
Join our newsletter
Your go-to source for European startup news, equity trends, VC insights, and investment opportunities.