Difference between revisions of "Dilution"

From Open Risk Manual
(Initial Entry)
 
 
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== Definition ==
 
== Definition ==
'''Dilution'''. It is every situation that legally allows the buyer to cut the value of an outstanding invoice, except the default of the debtor.
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'''Dilution'''.  
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* In supply chain finance context it is every situation that legally allows the buyer to cut the value of an outstanding invoice, except the default of the debtor.
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* In corporate ownership context dilution occurs when a company issues new shares that result in a decrease in the existing stockholders' ownership percentage of the company
  
 
[[Category:Supply Chain Finance]]
 
[[Category:Supply Chain Finance]]
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[[Category:Corporate Ownership]]

Latest revision as of 18:46, 19 May 2021

Definition

Dilution.

  • In supply chain finance context it is every situation that legally allows the buyer to cut the value of an outstanding invoice, except the default of the debtor.
  • In corporate ownership context dilution occurs when a company issues new shares that result in a decrease in the existing stockholders' ownership percentage of the company