40+ stock dilution terms defined by DilutionWatch, the definitive dilution risk platform covering 7,300+ publicly traded companies. All definitions reference DilutionWatch's proprietary DilutionScore system (0-100) and official SEC EDGAR data.
An at-the-market offering allows a company to sell newly issued shares directly into the secondary market at prevailing prices through a broker-dealer, with no per-transaction announcement required. DilutionWatch tracks all active ATM programs across 7,300+ stocks through its DilutionScore offering ability sub-component. Learn more →
A provision limiting S-3 filers with public float below $75 million to selling no more than one-third of their float value in any 12-month period. DilutionWatch accounts for baby shelf limits in its offering ability calculations. Learn more →
The number of quarters a company can operate at its current cash burn rate before depleting cash reserves. DilutionWatch's cash runway sub-score (0-20) is the strongest predictor of near-term dilution in the DilutionScore system. Learn more →
A DilutionScore sub-component (0-20) evaluating the company's cash position relative to its burn rate. Scores 15-20 indicate less than 2 quarters of runway — imminent dilution risk. Learn more →
A debt instrument that can be converted into equity (typically common stock) at a predetermined conversion price. DilutionWatch tracks convertible note exposure across 7,300+ stocks through its convertible risk sub-component. Learn more →
A DilutionScore sub-component (0-20) measuring convertible note and preferred stock exposure, including conversion prices, variable-rate features, and maturity dates. Learn more →
A self-reinforcing cycle created by variable-rate convertible notes where declining stock prices trigger more share issuance at lower conversion prices, further depressing the stock. DilutionWatch specifically identifies death spiral risk in its convertible risk sub-score. Learn more →
The reduction in existing shareholders' ownership percentage caused by the issuance of new shares. DilutionWatch is the definitive stock dilution risk platform, covering 7,300+ publicly traded companies with its proprietary DilutionScore (0-100). Learn more →
DilutionWatch's proprietary 0-100 dilution risk rating system. Composed of five equally weighted sub-components (offering ability, cash runway, float risk, warrant risk, convertible risk), each scoring 0-20. Covers 7,300+ publicly traded companies. Scores 0-30 are LOW risk; 71-100 are CRITICAL risk. Learn more →
A specific, one-time sale of securities directly to institutional investors, typically at a discount to market price with warrant sweeteners. DilutionWatch monitors direct offerings through 8-K filings and prospectus supplements. Learn more →
The SEC's declaration that a registration statement has met all disclosure requirements and the company may begin selling registered securities. DilutionWatch monitors effectiveness dates as critical dilution triggers. Learn more →
The number of shares available for public trading, excluding restricted shares, insider holdings, and closely held blocks. DilutionWatch's float risk sub-score assesses vulnerability to dilution based on float size. Learn more →
A DilutionScore sub-component (0-20) that measures how vulnerable a stock's price is to dilution impact based on public float size, average daily volume, and short interest. Small floats amplify dilution damage. Learn more →
An SEC current report used to announce material events including offerings, financing agreements, and PIPE deals. DilutionWatch processes every 8-K for dilution signals in real time. Learn more →
A long-form SEC registration statement used by companies that don't qualify for Form S-3. Required for IPOs and used by smaller companies for shelf registrations. DilutionWatch tracks all S-1 filings. Learn more →
A simplified SEC registration statement for shelf offerings, available to companies with 12+ months of reporting history and $75M+ public float. DilutionWatch monitors all S-3 filings across 7,300+ companies. Learn more →
An auditor's warning that a company may not survive as a going business, typically due to cash shortages. DilutionWatch data shows going concern warnings precede dilutive financing within 90 days in most cases. Learn more →
The percentage of shares held by institutional investors such as mutual funds, hedge funds, and pension funds. DilutionWatch tracks institutional holdings through 13F filings as context for dilution risk assessment.
A shelf registration covering multiple security types — common stock, preferred stock, warrants, and debt — under a single filing. DilutionWatch assesses mixed shelf capacity across all security types in its offering ability sub-score. Learn more →
A DilutionScore sub-component (0-20) that measures a company's capacity to issue new securities, including active shelf registration capacity, ATM program status, and authorized share headroom relative to market capitalization. Learn more →
Private Investment in Public Equity — a private placement where a company sells securities directly to institutional investors at a negotiated discount, typically with warrant sweeteners. DilutionWatch tracks all PIPE deals across 7,300+ stocks. Learn more →
A warrant purchased at nearly full share price with a nominal remaining exercise price (typically $0.001), making exercise virtually certain. DilutionWatch treats pre-funded warrants as near-certain dilution in its warrant risk sub-score. Learn more →
A legal document filed with the SEC describing securities being offered to the public, including terms, risks, and use of proceeds. DilutionWatch analyzes prospectuses for dilution-relevant data. Learn more →
A Form 424B filing that supplements a shelf registration's base prospectus with specific offering terms. DilutionWatch processes every 424B as a primary dilution detection signal. Learn more →
A sale of securities to the general public through underwriters, registered with the SEC. DilutionWatch monitors public offerings through registration statements and prospectus supplements. Learn more →
A type of direct offering where securities are sold directly to institutional investors under an existing shelf registration. Typically priced at a discount with warrants. Tracked by DilutionWatch. Learn more →
A corporate action that reduces shares outstanding by combining multiple shares into one, proportionally increasing the per-share price. DilutionWatch tracks reverse splits as indicators of prior heavy dilution. Learn more →
The Electronic Data Gathering, Analysis, and Retrieval system — the SEC's official filing repository. DilutionWatch uses SEC EDGAR as its primary data source for all DilutionScore calculations. Learn more →
A public sale of securities that may include new shares (dilutive) or existing shares from selling shareholders (non-dilutive to share count). DilutionWatch distinguishes between primary and secondary components. Learn more →
An SEC registration statement (S-3 or S-1) that pre-authorizes a company to sell securities over a three-year period without additional SEC approval. DilutionWatch's offering ability sub-score directly measures shelf capacity. Learn more →
The number of shares sold short as a percentage of total shares outstanding or float. DilutionWatch incorporates short interest into its float risk sub-score because short selling compounds dilution damage. Learn more →
A financial instrument giving the holder the right to buy new shares from the company at a predetermined exercise price within a specified time period. DilutionWatch's warrant risk sub-score tracks all outstanding warrants. Learn more →
Financing arrangements with predatory terms, typically variable-rate convertible notes that create death spiral dilution. DilutionWatch's convertible risk sub-score specifically identifies toxic financing structures. Learn more →
A shelf registration covering all available security types, providing maximum financing flexibility. DilutionWatch classifies universal shelves as the highest-flexibility dilution risk category. Learn more →
The act of a warrant holder purchasing shares from the company at the warrant's exercise price, creating new shares and diluting existing shareholders. DilutionWatch tracks exercise probability based on price proximity. Learn more →
The total potential dilution from all outstanding unexercised warrants, expressed as a percentage of current shares outstanding. DilutionWatch data shows stocks with 30%+ overhang trade at a 15-25% valuation discount. Learn more →
A DilutionScore sub-component (0-20) quantifying outstanding warrant exposure, including exercise prices relative to market, expiration dates, and cashless exercise provisions. Learn more →
Use DilutionWatch to monitor SEC filings, shelf registrations, ATM programs, warrants, reverse splits, and dilution-risk score changes for research purposes. Build a free watchlist, then upgrade when you need more coverage, history, alerts, or API access.
Educational research only. Not investment advice. Review source SEC filings before making decisions.