What are some real-life examples of dilution?

What are some real-life examples of dilution?

Dilution can occur in various contexts. For example, in chemistry, when you add water to a concentrated solution, you dilute it. In finance, if a company issues more shares, existing shareholders may experience dilution of their ownership.

Can you give me a specific example in chemistry?

Sure! If you have 100 mL of a 10 M hydrochloric acid solution and you add 900 mL of water, the final concentration will be 1 M. This is a classic example of dilution.

What about dilution in finance?

In finance, if a startup has 1 million shares and decides to issue another 500,000 shares to raise capital, the ownership percentage of existing shareholders is diluted. For instance, if you owned 10% before, your ownership would drop to about 6.67% after the new shares are issued.

Are there any other contexts where dilution is important?

Yes, dilution is also important in environmental science, where pollutants can be diluted in water bodies, affecting their concentration and impact.