Fundamental analysisTurkish: Dilüsyon (Sulandırma)
What is Dilution?
The reduction in existing shareholders' ownership percentage when new shares are issued.
ExampleThe capital increase diluted existing shareholders by 15%.The figures in the example illustrate the concept; they are not current market data.
Related terms
Earnings Per ShareA metric obtained by dividing a company's net income by the number of shares outstanding.EquityThe net value that belongs to shareholders, left after subtracting liabilities from a company's total assets.Value StockShares of a company thought to trade below its intrinsic value, at low multiples.DiversificationA strategy of spreading investments across asset classes, sectors and regions to reduce risk.
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Frequently asked questions
What is Dilution?
The reduction in existing shareholders' ownership percentage when new shares are issued.
What is Dilution called in Turkish?
In Turkish financial reporting and news, Dilution is called Dilüsyon (Sulandırma).
Which concepts are related to Dilution?
The concepts most often mentioned together with Dilution are Earnings Per Share and Equity.
More terms in Fundamental analysis
Active ManagementAlpha (α)ArbitrageAsset AllocationBalance SheetBear MarketBeta (β)BondBull MarketCapital Expenditure (Capex)Cash FlowCorrelationDiscount RateDiscounted Cash FlowDividendDividend YieldEarnings ReleaseEarnings SurpriseEnterprise Value (EV)EV/EBITDAFair ValueGross Profit MarginGrowth StockHigh-Frequency Trading (HFT)Income StatementInsider TradingInternal Rate of ReturnInvestment InstrumentsLeverageLiquidityMargin CallMarket CapitalizationNet Profit MarginOpen PositionP/B Ratio (Price-to-Book)P/E Ratio (Price-to-Earnings)PortfolioReturn on AssetsReturn on EquitySharpe RatioShort PositionSpreadStop-LossStop-Loss OrderVolatilityWeighted Average CostWeighted Average Cost of Capital