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BL28

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BL28

Re: Cashking74 post# 17768

Tuesday, 09/15/2015 3:21:17 PM

Tuesday, September 15, 2015 3:21:17 PM

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Definition of Dilution. For your records.


A reduction in the ownership percentage of a share of stock caused by the issuance of new stock. Dilution can also occur when holders of stock options (such as company employees) or holders of other optionable securities exercise their options. When the number of shares outstanding increases, each existing stockholder will own a smaller, or diluted, percentage of the company, making each share less valuable. Dilution also reduces the value of existing shares by reducing the stock's earnings per share.

Read more: Dilution Definition | Investopedia http://www.investopedia.com/terms/d/dilution.asp#ixzz3lpwJed77
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