Dilution
Fundamental analysisA reduction in your proportional ownership when a company issues new shares.
In plain terms
The cake is the same size and there are more people at the table. Watch share count alongside profit.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 3 terms
Read the full lesson →
Convertible warrant
Fundamental analysisAn instrument entitling the holder to subscribe to shares later at a price fixed today, with part of the price paid upfront and the balance on exercise within the period the regulations allow.
In plain terms
The most forecastable dilution there is: the number of shares that will exist on conversion is public from the day the general meeting approves it.
QIP
Market basicsAlso called: Qualified Institutional Placement
Qualified Institutional Placement — a SEBI-recognised route by which a listed company issues fresh shares to institutional buyers without a full public offer.
In plain terms
Quick capital for the company and dilution for you. What decides whether it was acceptable is what the money is for: funding expansion is a different matter from repaying debt created by past mistakes.