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share dilution
noun
The loss in value to current stockholders that results from the issuance of new shares in return for a price that is less than market value.
synonyms
Exact(29)
Options, which cost stockholders in share dilution, cost companies nothing to issue and actually save them money on payroll costs.
The top shareholders held stock representing 53.7percentt of Yukos before the share dilution related to the Sibneft merger.
Companies typically say that buyback programs "enhance shareholder value" and offset the share dilution caused by employees exercising stock options.
But those gains evaporated as optimism about Barclays' financial strength gave way to concerns about share dilution and a worsening economic outlook.
In the last three years, for example, Dell Computer has bought back $3.6 billion worth of stock to reduce share dilution.
To keep accounting income looking healthy, some companies began issuing restricted stock, which minimizes share dilution and spreads the compensation expense over the vesting period of the stock.
Similar(31)
"I didn't want to sign documents allowing share dilutions," he said.
After years of share dilutions, lock-outs from annual meetings and the occasional outright expropriation, foreign investors understand that most Russian companies care little for shareholder rights.
The company's chief executive, Robert W. Dudley, who has led BP since October 2010, said in a statement that the buyback was expected to exceed what was required to offset the earnings-per-share dilution as a result of the TNK-BP sale.
At times of duress, they can sound suspiciously like a mobster's "cough up or else" ("or else" meaning severe share-dilution).But these are not normal times.
This overriding factor examines share capital dilution (as opposed to voting power dilution) calculated as: (A + B + C) ÷ CSO, where: A = # new shares requested; B = # shares that remain available for issuance; C = # unexercised/unvested outstanding awards; and CSO = common shares outstanding.
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