Antidilutive effect

(redirected from Anti-Dilutive Effect)

Antidilutive effect

Result of a transaction that increases earnings per common share (e.g., by decreasing the number of shares outstanding).

Antidilutive Effect

The result of the retirement of shares, usually through a buyback. That is, a company may buy back some of its own shares from shareholders, which reduces the number of shares outstanding. This increases the company's earnings per share, which in turn usually increases the stock price.
References in periodicals archive ?
(7) The corporation incurred a net loss in the fourth quarter of 2017 causing inclusion of any potentially dilutive securities to have an anti-dilutive effect, resulting in the weighted average shares outstanding for basic and dilutive earnings per share being equivalent during the quarter.
announced that he will surrender 30m common shares (of the 90m common shares received) to the company for cancellation, which will further strengthen the company's stockholders position by its anti-dilutive effect.
The computation of diluted EPS should not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect on earnings per share.
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