Words / D / Law

dilution

/daɪˈluːʃən/

B1CEFR level
55/100Rarity: uncommon
TechnicalRegister

Law noun

The reduction in existing shareholders' proportionate interest caused by the issue of new shares.

The minority objected to the fresh issue because of the dilution of their voting power.

Topic: Commercial law in Legal English

Business noun

The reduction in existing shareholders' ownership caused by issuing new shares.

Founders resisted the round because the dilution would drop their combined stake below fifty percent.

Similar: watering down

Topic: Finance in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More law words: Commercial law