Dilutive

Dilutive
   The effect of reducing earnings per share by spreading the same amount of earnings among an increased number of shares.

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dilute UK US /daɪˈluːt/ verb [T]
► to make something less strong or less valuable: »

Our recent acquisitions are going to dilute earnings in the next few years.

 »

The rise in foreclosures is likely to dilute real estate prices.

► FINANCE to make a company's shares less valuable by increasing the total number of shares, so that each shareholder gets a smaller part of the profit and owns a smaller percentage of the company than before: »

The company's share issue will increase the number of shares on the market, diluting their value and upsetting current stockholders.

 »

diluted shares/stock

dilutive adjective
► »

In the short-term, this strategy will be dilutive to earnings.


Financial and business terms. 2012.

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Look at other dictionaries:

  • dilutive — adjective Describing something that dilutes or causes dilution. The shareholders objected to the stock offering as dilutive, leaving them with little or no leverage …   Wiktionary

  • dilutive — dilute ► VERB 1) make (a liquid) thinner or weaker by adding water or another solvent. 2) weaken by modifying or adding other elements. ► ADJECTIVE 1) (of a liquid) diluted. 2) Chemistry (of a solution) having a relatively low concentration of… …   English terms dictionary

  • dilutive — (ˈ)dī¦l(y)üd.iv, də̇ˈl adjective Etymology: dilute (I) + ive (I) : reducing or involving reduction of per share income of a corporate stock the dilutive effect of stock options and convertible securities …   Useful english dictionary

  • Dilutive security — are financial instruments like stock options, warrants, convertible bonds, etc. which increases the number of Common stock, if exercised. It reduces the Basic EPS (Earnings Per Share). Only if the Diluted EPS is less than the Basic EPS then it is …   Wikipedia

  • Dilutive Acquisition — A takeover transaction that will decrease the acquirer s earnings per share (EPS) if additional shares are issued to pay for the acquisition. Dilutive acquisitions decrease shareholder value and should thus be avoided, unless the strategic value… …   Investment dictionary

  • dilutive — adjective see dilute I …   New Collegiate Dictionary

  • dilutive — See diluter. * * * …   Universalium

  • dilutive — adj. causing dilution, serving to make a liquid thinner …   English contemporary dictionary

  • dilutive — di·lu·tive …   English syllables

  • Dilutive effect — Result of a transaction that decreases earnings per common share. The New York Times Financial Glossary …   Financial and business terms

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