Description
Compare ownership before and after a capital event.
Corporate-finance calculations depend on currency, period, share class, contractual definitions and tax assumptions. A local balance or ownership factor reconciles supplied amounts without determining a complete valuation, financing outcome, enforceable right or applicable tax treatment.
Compare ownership before and after a capital event.
When to use this tool
Use Capital Event Share Dilution Gap when checking one supplied corporate cash-flow, share, repayment or notice convention.
How to use the tool and how it works
- Enter heldBefore, outstandingBefore, issued, acquired, suppliedExpectedOwnership. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read ownershipBefore, ownershipAfter, dilution, expectationGap. Use the output convention below.
Compare ownership before and after a capital event. Require valid nonnegative held/outstanding and acquired/issued bounds, plus expected ownership in [0,1]; ownershipAfter = (held+acquired)/(outstanding+issued), dilution = before-after and expectationGap = after-expected.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| heldBefore | Held Before | Required. Finite number; minimum 0. |
| outstandingBefore | Outstanding Before | Required. Finite number; strictly above 0. |
| issued | Issued | Required. Finite number; minimum 0. |
| acquired | Acquired | Required. Finite number; minimum 0. |
| suppliedExpectedOwnership | Supplied Expected Ownership | Required. Finite number; minimum 0; maximum 1. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| ownershipBefore | Ownership Before | Required. Finite number. |
| ownershipAfter | Ownership After | Required. Finite number. |
| dilution | ownershipBefore-ownershipAfter; negative values indicate increased ownership. | Required. Finite number. |
| expectationGap | Expectation Gap | Required. Finite number. |
{
"input": {
"heldBefore": 20,
"outstandingBefore": 100,
"issued": 100,
"acquired": 0,
"suppliedExpectedOwnership": 0.12
},
"output": {
"ownershipBefore": 0.2,
"ownershipAfter": 0.1,
"dilution": 0.1,
"expectationGap": -0.01999999999999999
}
}Limitations and assumptions
- Negative dilution represents an increase; share classes, prices, rights and actual capital-event terms are not determined.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use complete financial records, governing transaction documents and qualified financial, tax or legal advice for actual decisions and obligations.
References
Similar or alternative tools
- Dilution Instrument Share Factor
Return post-issue share count and retained ownership factor.
- Merger Fraction Cash Remainder Term
Return whole merger shares and a fractional cash equivalent.