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What is Share Dilution?

Basics

지분 희석

A phenomenon in which a company issues new shares, the total share count rises, and existing shareholders' ownership percentage falls. Even if the number of shares one holds is unchanged, one's share of the whole shrinks. Rights offerings, conversion of convertible bonds into shares, and stock compensation for employees are typical routes by which the share count rises.

Share DilutionMy one slice of ownership shrinks because of the new shares

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Share Dilution meaning — Trading glossary | MarketSurfer