dilutedi·lute /daɪˈluːt/ verb [transitiveT] FINANCE if a company dilutes its shares or the earnings on its shares, it increases the number of its shares that are available and so reduces the amount that each share will earnThey issued new shares which diluted the equity of the current shareholders.
$900 million equity infusion could dilute earnings by 10% next year.
—dilution noun [uncountableU]The conversion of loan stock will give the new investors 58% of the ordinary share capital, representing a substantial dilution of equity.