Dilution
The reduction of a holder's share of capital and votes caused by new shares he did not buy.
How to read the number
Profit and distributions are divided among more shares, so what matters is not the issue itself but whether the money raised earns its keep.
When the metric lies
Dilution also happens without a new issue — through conversion, the exercise of incentive options and share exchanges during a reorganisation.
Also known as: equity dilution