# Dilutive Action question

**URL:** <https://talk.achievable.me/t/dilutive-action-question/1171>\
**Category:** FINRA\
**Created:** [January 11, 2022, 5:57am UTC](https://talk.achievable.me/t/dilutive-action-question/1171 "2022-01-11T05:57:13Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![Gray](https://talk.achievable.me/user_avatar/talk.achievable.me/gray/32/605_2.png) [@Gray](https://talk.achievable.me/u/Gray)\
**Post date:** [January 11, 2022, 5:57am UTC](https://talk.achievable.me/t/dilutive-action-question/1171/1 "2022-01-11T05:57:13Z")

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I have a question regarding this review question:

 ![Screen Shot 2022-01-10 at 19.50.34](https://d2a8kmyc1dvkyq.cloudfront.net/original/1X/44af70e9170f8f1f23a6a9688db0d1e834027b1e.jpeg)

So I think I have a pretty good grasp on rights and warrants. However, I don’t see how the issuance of rights is not a dilutive action. I mean, I get that it’s not dilutive for those individuals who take advantage of the rights offering. However, for the investors that choose to not exercise their rights but let them expire, it would be dilutive for them, correct? More shares are being issued, so that would be considered dilutive in my mind…

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**Author:** ![brandonrith](https://talk.achievable.me/user_avatar/talk.achievable.me/brandonrith/32/29_2.png) [@brandonrith](https://talk.achievable.me/u/brandonrith)\
**Post date:** [January 11, 2022, 10:19pm UTC](https://talk.achievable.me/t/dilutive-action-question/1171/2 "2022-01-11T22:19:55Z")

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Hi @Gray - your thinking is totally on point here. However, we consider an action non-dilutive as long as a shareholder was provided the _opportunity_ to maintain their proportionate ownership. Of course, a rights holder that either trades or allows rights to expire will eventually get diluted. However, we measure dilution more by opportunity than it actually occurring.

I hope this helps!

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**Author:** ![Gray](https://talk.achievable.me/user_avatar/talk.achievable.me/gray/32/605_2.png) [@Gray](https://talk.achievable.me/u/Gray)\
**Post date:** [January 12, 2022, 12:10am UTC](https://talk.achievable.me/t/dilutive-action-question/1171/3 "2022-01-12T00:10:32Z")

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Yep, that makes sense! Thanks!