Plain-language glossary
Dilution
Dilution happens when a company issues more shares, reducing an existing holder's ownership percentage even if the value of their stake may increase.
For startup investors
Where this term changes your decision
Use this term to identify the instrument, economics, rights, or regulatory route in the actual documents. Do not infer current availability or suitability from a definition alone.
Reviewed August 24, 2026 · Educational information