Antidilutive 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 ?
Even though they have an antidilutive effect on income before extraordinary items, they have a dilutive effect on net income.