What is Dilution?
Your share getting smaller as new shares are issued. A smaller share of a bigger company can still be worth more.
Funding
The definition
The reduction in an existing owner's percentage when new shares are issued.
An example
Owning 100% of a business worth $1m beats owning 60% of one worth $1.2m. It stops being true at $2m.
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Questions people ask
What is Dilution?
The reduction in an existing owner's percentage when new shares are issued. Your share getting smaller as new shares are issued. A smaller share of a bigger company can still be worth more.