Definitions

1. adjective

tending to dilute or reduce the concentration of something, especially the value or influence of a company’s shares.

“The company’s dilutive stock offerings have led to a decline in its stock price.”

2. noun

an increase in the number of shares of a company, which can reduce the value of the existing shares.

“The dilutive effect of the stock split has made it more difficult for investors to sell their shares.”