dilutive

(adjective)

Describing something that dilutes or causes dilution (reduces value).

Related Terms

Examples of dilutive in the following topics:

  • Dilutions of Solutions

    • What is the final concentration of the diluted solution?
    • Serial dilutions involve diluting a stock or standard solution multiple times in a row.
    • Typically, the dilution factor remains constant for each dilution, resulting in an exponential decrease in concentration.
    • This video shows how to solve two dilution problems, using the standard dilution formula, M1V1 = M2V2.
    • Dilutions can sometimes be visually observed.

  • Calculating Diluted Earnings per Share

    • Diluted earnings per share (EPS) takes the basic EPS formula and accounts for the effect of dilutive shares on earnings.
    • Diluted Earnings Per Share (diluted EPS) is a company's earnings per share (EPS) calculated using fully diluted common shares outstanding (i.e. which includes the impact of instruments such as stock option grants and convertible bonds).
    • Fully diluted common shares consider securities with features that will increase the number of common shares outstanding and reduce (dilute) earnings per share.
    • Diluted earnings per share includes shares of common stock from dilutive securities, such as convertible debt or stock options, in its calculation.
    • Explain why a company would calculate diluted earning per share for its stock

  • Aseptic Technique, Dilution, Streaking, and Spread Plates

    • A serial dilution is the step-wise dilution of a substance in solution.
    • Serial dilutions are used to accurately create highly-diluted solutions as well.
    • The dilution of microbes is very important to get to microbes diluted enough to count on a spread plate (described later).
    • Microbes are in a solution, and can be diluted.
    • Example of Serial dilution of bacteria in five steps.

  • Earnings per Share

    • Diluted Earnings Per Share (diluted EPS) is a company's earnings per share (EPS) calculated using fully diluted outstanding shares (i.e. including the impact of stock option grants and convertible bonds).
    • To find diluted EPS, basic EPS is first calculated for each of the categories on the income statement.
    • Then each of the dilutive securities are ranked based on their effects, from most dilutive to least dilutive and antidilutive.
    • Calculations of diluted EPS vary.
    • This is adjusted for dilutive shares.

  • Viable Cell Counting

    • To ensure that an appropriate number of colonies will be generated several dilutions are normally cultured.
    • The initial analysis is done by mixing serial dilutions of the sample in liquid nutrient agar which is then poured into bottles.
    • Calculation of this is a multiple of the counted number of colonies multiplied by the dilution used.
    • Examples of a viable cell count are spread plates from a serial dilution of a liquid culture and pour plates.
    • With a spread plate one makes serial dilutions in liquid media and then spreads a known volume from the last tube in the dilution series.

  • Seasoned Equity Offering

    • The new shares dilute the value of the existing shares, and this is understandably, typically not looked upon kindly by those who own shares before the dilution.
    • In theory, this dilution should correspond directly to a drop in the share price such that the market capitalization of the company remains the same.
    • The sale of the shares does not benefit the company, and, more importantly, is not dilutive.
    • The dilution of the shares outstanding should theoretically be met with a corresponding drop in share price.

  • Minimal Inhibitory Concentration (MIC)

    • MICs can be determined on plates of solid growth medium (called agar, shown in the "Kirby-Bauer Disk Susceptibility Test" atom) or broth dilution methods (in liquid growth media, shown in ) after a pure culture is isolated.
    • For example, to identify the MIC via broth dilution, identical doses of bacteria are cultured in wells of liquid media containing progressively lower concentrations of the drug.
    • (Here, the dilution series of the drug is set up from left to right: for example, well E1 might contain 100 units of drug; E2, 50 units; E3, 25 units; E4, 12.5 units; etc.).

  • Using Molarity in Calculations of Solutions

    • You might notice that the above formula bears some resemblance to our dilution formula:
    • Because we now know that MV = mol, we can simplify our the dilution formula to the following:
    • After all, in any dilution, what changes is the amount of solvent, while the number of moles of solute remains constant throughout.

  • Special Reporting

    • There are two forms of earnings per share that are reported: basic and diluted.
    • In diluted, the weighted average of shares outstanding is calculated as if all stock options, warrants, convertible bonds and other securities that could be transformed into shares are transformed.
    • Diluted earnings per share are considered a more reliable way to measure earnings per share.

  • The Cost of New Common Stock

    • Another contributor to flotation cost is stock value dilution that arises from issuing new shares into the market.
    • The theoretical diluted price–the price after an increase in the number of shares–can be calculated as , where SON is the original number of shares, SNN is the new number of shares, SOP is the original share price, and SNP is the new share price.