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Dilutive Effect

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Dilutive effect
Result of a transaction that decreases earnings per common share (EPS).

Dilutive Effect
The result of an increase in the number of shares, usually through a new issue. That is, a company may issue more shares to shareholders and other investors, which raises the number of shares outstanding. This decreases the company's earnings per share, which, in turn, can decrease the stock price. See also: Anti-dilution provision.


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Despite the dilutive effect of the proposed pay package, investors appeared to welcome Dunsmore's appointment today as C&C shares closed up up 19% at €1.
75p as traders mulled the dilutive effect this would have on their stock
The acquisition is expected to have a dilutive effect of about 3% on total company earnings in 2004, an approximately neutral effect in 2005 and a positive effect on earnings anticipated from growth and efficiencies by 2006.
 
 
 
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