Dilution (finance)

See also: Dilution (homonymy)

In finance, the dilution is related to the capital growths of a company by subscription of news actions, exercise of the Stock option S or Fusion-acquisition of another company.

It is about the reduction in the Earning per share of the company owing to the fact that there are more titles to remunerate.

However certain factors can compensate for this phenomenon at least partly: saving in financial expenses owing to the fact that the supplement of Stockholders' equity due to the operation can make it possible to decrease the Dette S, savings in costs due to the synergy of fusion, etc

When the operation leads on the contrary to an increase in the earning per share, one speaks about relution .

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