Dilution occurs when a company issues new stock which reduces an existing shareholder`s percentage of ownership.

Companies might issue new stock to raise money. This can make each current share less powerful in voting and value.

What is dilution of shareholding of existing shareholders? Dilution of shareholding means current owners own a smaller part of the company after it issues new shares.

What happens during dilution? During dilution, a company releases more shares. This lowers the ownership percentage of existing shareholders.

Does a stock split dilute shareholder equity? No, a stock split doesn`t dilute shareholder equity. It increases the number of shares but keeps the total ownership the same.

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Issuing new stock can give a company more money to grow. This can lead to a bigger, more successful business in the long run.

Dilution reduces the ownership share of current shareholders. Yet, it can be a step towards growing the company.