Share issues
What happens to your ownership when new shares are issued?
Try the interactive calculator →
Share dilution: the definition
Ownership dilution happens when your shares represent a smaller percentage of a company after additional shares are issued.
What it means
If you do not acquire any additional shares, a larger total share count reduces your percentage holding. That calculation alone does not determine your investment's value: the company may also receive cash or assets in exchange for the new shares.
ILLUSTRATIVE EXAMPLE
You own 100 of a company's 1,000 shares, or 10%. It issues 250 more shares and you buy none. You still own 100 shares, but now hold 8% of the 1,250 total. Your ownership falls by two percentage points, a 20% relative reduction.
TRY YOUR OWN NUMBERS
Try the ownership dilution calculator
Use actual share counts throughout. Total new shares must include any new shares you acquire.
This simple share issue example assumes equal voting and economic rights. It excludes options, warrants, share classes, costs and changes in company value.
Your inputs stay on this page. They are not sent to Edravo or saved.
What to check
- How many new shares will be issued?
- Can existing shareholders participate, and on what terms?
- What is the money for, and what costs are involved?
Check both the new share count and what the company receives in return.
Sources and review date
Reviewed by Edravo on 6 September 2026.
Put this guide to work
Find a company you follow, read its available announcements and build a free watchlist of up to three companies.
Explore company announcements →