Glossary
- DAX
- DAX future
- Day-Trading
- Dealer
- Delta (warrant)
- Derivatives
- Derivatives exchange
- Derivatives market
- Designated Sponsor
- Dilution of ownership
- Direct bank
- Direct listing
- Direct offering
- Directors' Dealings
- Discount broker
- Discount certificates
- Discount rate
- Distribution
- DivDAX
- Diversification
- Dividend
- Dividend guarantee
- Dividend stripping
- Dividend yield
- Double listing
- Downward movement
- Dual Listing (DL)
Dilution of ownership
Reduction in the value of a company's shares following a capital increase.
When a company issues new shares or bonus shares, its capital stock increases, although the overall value of the shares remains the same. As a result, each individual share is worth less than it was prior to the new issue, and the proportion of the company owned by existing shareholders decreases. The company protects existing shareholders from the effects of dilution by granting them subscription rights, which they can use to acquire some of the newly issued shares.
Our glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at redaktion@deutsche-boerse.com. We will then include the term if possible.
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