KMA Global Solutions International (KMAG)

[Monarchs96]

Here is the defintion of dilution (and I know you know this)

Stock dilution is a general term that results from the issue of additional common shares by a company. This increase in the number of shares outstanding can result from a primary market offering (including an initial public offering), employees exercising stock options, or by conversion of convertible bonds, preferred shares or warrants into stock. This dilution can shift fundamental positions of the stock such as ownership percentage, voting control, earnings per share, or the value of individual shares. A broader definition specifies dilution as any event that reduces an investor's stock price below the initial purchase price.


So when you start talking about dilution, people think you are taling about an increase in the share structure as that is what stock dilution fundamentally is. You really mean to say "an increase in the number of shares being freely trading." That could very well be.