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Stock dilution

Index Stock dilution

Stock dilution, also known as equity dilution, is the decrease in existing shareholders’ ownership of a company as a result of the company issuing new equity. [1]

22 relations: Accretion/dilution analysis, Book value, Convertible bond, Death spiral financing, Earnings per share, Employee stock option, Equity (finance), Follow-on offering, Initial public offering, Net income, OTC Bulletin Board, OTC Markets Group, Preferred stock, Price–earnings ratio, Return on equity, Reverse stock split, Share capital, Share repurchase, Shareholder, Shares outstanding, Venture capital, Warrant (finance).

Accretion/dilution analysis

Accretion/dilution analysis is a type of M&A financial modelling performed in the pre-deal phase to evaluate the effect of the transaction on shareholder value and to check whether EPS for buying shareholders will increase or decrease post-deal.

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Book value

In accounting, book value is the value of an asset according to its balance sheet account balance.

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Convertible bond

In finance, a convertible bond or convertible note or convertible debt (or a convertible debenture if it has a maturity of greater than 10 years) is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value.

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Death spiral financing

Death spiral financing is a process in which convertible financing used to fund primarily small cap companies can be used against it in the marketplace to cause the company’s stock to fall dramatically, which can lead to the company’s ultimate downfall.

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Earnings per share

Earnings per share (EPS) is the monetary value of earnings per outstanding share of common stock for a company.

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Employee stock option

An employee stock option (ESO) is commonly viewed as a complex call option on the common stock of a company, granted by the company to an employee as part of the employee's remuneration package.

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Equity (finance)

In accounting, equity (or owner's equity) is the difference between the value of the assets and the value of the liabilities of something owned.

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Follow-on offering

A follow-on offering (often but incorrectly called a secondary offering) is an issuance of stock subsequent to the company's initial public offering.

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Initial public offering

Initial public offering (IPO) or stock market launch is a type of public offering in which shares of a company are sold to institutional investors and usually also retail (individual) investors; an IPO is underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges.

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Net income

In business, net income (total comprehensive income, net earnings, net profit, informally, bottom line) is an entity's income minus cost of goods sold, expenses and taxes for an accounting period.

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OTC Bulletin Board

The OTC (Over-The-Counter) Bulletin Board or OTCBB is a United States quotation medium operated by the Financial Industry Regulatory Authority (FINRA) for its subscribing members.

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OTC Markets Group

OTC Markets Group, (previously known as "Pink Sheets") is an American financial market providing price and liquidity information for almost 10,000 over-the-counter (OTC) securities.

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Preferred stock

Preferred stock (also called preferred shares, preference shares or simply preferreds) is a type of stock which may have any combination of features not possessed by common stock including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument.

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Price–earnings ratio

The price/earnings ratio (often shortened to the P/E ratio or the PER) is the ratio of a company's stock price to the company's earnings per share.

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Return on equity

In corporate finance, the return on equity (ROE) is a measure of the profitability of a business in relation to the book value of shareholder equity, also known as net assets or assets minus liabilities.

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Reverse stock split

In finance, a reverse stock split or reverse split is a process by which shares of corporate stock are effectively merged to form a smaller number of proportionally more valuable shares.

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Share capital

A corporation's share capital (or capital stock in US English) is the portion of a corporation's equity that has been obtained by the issue of shares in the corporation to a shareholder, usually for cash.

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Share repurchase

Share repurchase (or stock buyback) is the re-acquisition by a company of its own stock.

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Shareholder

A shareholder or stockholder is an individual or institution (including a corporation) that legally owns one or more shares of stock in a public or private corporation.

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Shares outstanding

Shares outstanding are all the shares of a corporation or financial asset that have been authorized, issued and purchased by investors and are held by them.

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Venture capital

Venture capital (VC) is a type of private equity, a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth (in terms of number of employees, annual revenue, or both).

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Warrant (finance)

In finance, a warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed price called exercise price until the expiry date.

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Redirects here:

Dilution (finance), Equity dilution, Full dilution, Share dilution.

References

[1] https://en.wikipedia.org/wiki/Stock_dilution

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