Dilution

What traders should verify

For Dilution, trace the instrument count, rights, price or conversion terms, vesting or maturity, measurement date, and later changes in filings.

Do not conflate

Do not treat Dilution as proof that shares are issued, outstanding, freely tradable, converted, exercised, vested, or sold unless the evidence establishes that state.

Primary source

Source boundary: this glossary reflects SEC staff views and is not a Commission rule, regulation, or statement. Check the linked source for current wording and legal context.

Related glossary terms

Related lessons

• Forget filings for a minute: dilution is a pie cut into more slices
• Fully diluted shares: how warrants and convertibles become shares later
• Final lesson: calculate one company from beginning to end
• Equity line of credit (ELOC): a $25 million headline that may unlock far less
• Pre-funded warrants: shares already paid for, waiting behind a blocker
• Warrant inducement: why holders exercise early and receive new warrants