How dilution works

Dilution happens when additional shares or convertible rights increase the total number of shares. An existing holder may keep the same number of shares but own a smaller percentage. Review option pools, warrants, convertible instruments, pre-emptive rights, anti-dilution clauses, and fully diluted calculations. Compare realistic future-financing scenarios before committing.

General information only. Laws and outcomes depend on jurisdiction and facts. Ask a qualified lawyer to advise you.


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