Share Dilution Calculator

Calculate how a new share offering will dilute existing shareholders. See the projected price impact, your ownership change, and the dollar impact on your position.

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What Is Share Dilution?

Share dilution occurs when a company issues new shares, reducing the ownership percentage of existing shareholders. In the penny stock world, dilution is extremely common and is the primary mechanism through which shareholder value is destroyed.

Types of Dilution to Watch

  • Direct offerings — shares sold directly to investors, often at a discount to market
  • Warrant exercises — previously issued warrants converted to shares
  • Convertible note conversions — debt converted to equity at steep discounts (see toxic financing)
  • Reverse splits followed by new offerings — consolidate shares then immediately issue new ones

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