Dilutive effect

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.
References in periodicals archive ?
Enhanced disclosures required in the bills include: 1) a discussion of the dilutive effect of stock option plans (written in accordance with something called the "Plain English Handbook"); 2) expanded disclosure of the dilutive effect of stock options on the company's earnings per share number; 3) prominent placement and increased comparability of all stock option-related information; and 4) a summary of stock options granted to the five most highly compensated executive officers, including their outstanding options.
The closing of the transaction is anticipated prior to June 2000, and would have some slight dilutive effect on BroadVision's earnings in the first half of the year 2000, according to a company spokesperson.
The method used to determine the dilutive effect of a convertible security.
53 if the dilutive effect of the initial public offering had occurred as of November 1, 1992).
By repurchasing the notes, ICG removed the future dilutive effect of the approximately 2.
Factors which could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to, fluctuations in market rates of interest and loan and deposit pricing; a deterioration of general economic conditions or the demand for housing in the Company's market areas; legislative or regulatory changes; adverse developments in the Company's loan or investment portfolio; any inability to obtain funding on favorable terms; the loss of key personnel; significant increases in competition; and the possible dilutive effect of potential acquisitions or expansions.
The issuance of the Rights has no dilutive effect, will not affect reported earnings per share, is not taxable to Unilab or its stockholders, and will not change the way in which Unilab stock is traded.
Primary earnings per share are computed based on the weighted average number of common shares outstanding and the dilutive effect of stock options outstanding.
This provision will have an economically dilutive effect on the acquiror and will provide a corresponding benefit to the remaining holders of Rights, without requiring these holders to go through the process and expense of exercising their Rights.
In connection with the program, Life Time Fitness' board of directors has authorized purchases by the company of up to 500,000 shares of its common stock from time to time in the open market or otherwise for the primary purpose of offsetting the dilutive effect of shares issued pursuant to the ESPP.
This provision would also have a dilutive effect on the acquiror, buth without holders of rights going through the process and expense of actually exercising the rights.
The percentage increase in expected net income for the 2006 second quarter exceeds the percentage increase in expected diluted earnings per share due to the dilutive effect of the July 2005 follow-on equity offering.