1. having the effect of reducing the strength, value, or quality of something by mixing it with something else
Usage: often used in business and finance contexts
2. reducing the ownership percentage or earnings per share of existing shareholders
Usage: finance; business

Examples

• The company avoided issuing new stock because it would be dilutive to existing shareholders.
• Adding too much water had a dilutive effect on the flavor of the soup.
• The merger was expected to be dilutive to earnings in the first year.
• Management rejected the dilutive financing option in favor of debt.
• The dilutive impact of the stock split was carefully calculated.
• Investors were concerned about the dilutive nature of the convertible bonds.