The effect of a situation opposite to dilution. Specifically, it denotes an increase in earnings per share (EPS) or a decrease in loss per share that is associated with:
- actual or assumed conversion of convertible instruments (e.g., convertible bonds);
- exercise of options and warrants; or
- issuance of ordinary shares.
Anti-dilutive securities are financial instruments that an entity issues to existing or potential shareholders (holders of its common stock/ ordinary share), conferring on them the right to convert these securities into common stock. This would result in an increase in the earning per share or a decrease in the loss per share of the entity.
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