This is a measure of positive or negative equity dilution. When the number of shares outstanding increases, each existing stockholder will own a smaller, or diluted, percentage of the company, making each share less valuable.

An increase in the number of shares outstanding can result from a placement, employees exercising stock, or by conversion of convertible bonds, preferred shares or warrants into shares.

This is not the same as the Buyback Yield, which is defined as the amount the company has been spending on buybacks, divided by its market capitalisation.