Dilution

Dilution may refer to:

Stock dilution

Stock dilution is an economic phenomenon resulting from the issue of additional common shares by a company. This increase in the number of shares outstanding can result from a primary market offering (including an initial public offering), employees exercising stock options, or by conversion of convertible bonds, preferred shares or warrants into stock. This dilution can shift fundamental positions of the stock such as ownership percentage, voting control, earnings per share, and the value of individual shares. A broader definition specifies dilution as any event that reduces an investor's stock price below the initial purchase price.

Control dilution

Control dilution describes the reduction in ownership percentage or loss of a controlling share of an investment's stock. Many venture capital contracts contain an anti-dilution provision in favor of the original investors, to protect their equity investments. One way to raise new equity without diluting voting control is to give warrants to all the existing shareholders equally. They can choose to put more money in the company, or else lose ownership percentage. When employee options threaten to dilute the ownership of a control group, the company can use cash to buy back the shares issued.

Dilution (equation)

Dilution is a reduction in the pH of a chemical (gas, vapor, solution). It is the process of decreasing the concentration of a solute in solution, usually simply by mixing with more solvent. To dilute a solution means to add more solvent without the addition of more solute. The resulting solution is thoroughly mixed so as to ensure that all parts of the solution are identical.

The same direct relationship applies to gases and vapors diluted in air for example. Although, thorough mixing of gases and vapors may not be as easily accomplished.

For example, if there are 10 grams of salt (the solute) dissolved in 1 litre of water (the solvent), this solution has a certain salt concentration/molarity. If one adds 1 litre of water to this solution the salt concentration is reduced. The diluted solution still contains 10 grams of salt/(0.171 moles of NaCl).

Mathematically this relationship can be shown in the equation:

Where:

Basic Room Purge Equation

The Basic Room Purge Equation, is used in industrial hygiene. It determines the time required to reduce a known vapor concentration existing in a closed space to a lower vapor concentration. The equation can only be applied when the purged volume of vapor or gas is replaced with "clean" air or gas. For example, the equation can be used to calculate the time required at a certain ventilation rate to reduce a high carbon monoxide concentration in a room.