Equity Dilution

Equity dilution occurs when a company issues additional shares, reducing existing shareholders' ownership percentage. It often results from new equity financing, stock options, or convertible securities being exercised.

Key Takeaways

  • Occurs when additional shares are issued.
  • Reduces existing shareholders' ownership percentage.
  • Results from new equity financing, stock options, or convertible securities.
  • Important consideration for investors.

Get a guided tour of the Flow platform.