Definition for : Technical dilution
Technical dilution is Apparent dilution less real dilution. It is due to the distribution of "free" bonus shares that automatically accompanies any Capital increase via a Rights issue. Technical dilution represents the additional dilution (see dilution Shareholders) attributable to the sale of subscription rights by Shareholders who use the occasion of the Capital increase to reduce their Investment in the company.
(See Chapter 39 Implementing a debt policy of the Vernimmen)
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