What is share dilution in stocks?

Share dilution occurs when a company issues new shares, reducing existing shareholders' percentage ownership. It typically happens through ATM programs, shelf registrations, PIPE transactions, or convertible note conversions. TRACE tracks all dilutive events in real time from SEC EDGAR filings.

What is an ATM program in stocks?

An ATM (At-the-Market) program is a type of shelf offering that allows a company to sell shares directly into the open market at current market prices over time. Unlike a traditional follow-on offering, ATM programs drip shares continuously, creating gradual dilution. TRACE tracks ATM program status, remaining capacity, and draw history.

How do I track stock dilution?

TRACE monitors SEC EDGAR filings 24/7, extracting ATM programs, shelf registrations, 424B prospectuses, and S-3 filings. The Supply Pulse score (0–100) summarises current dilution risk for any covered ticker, and real-time alerts notify you the moment a new filing is detected.

What is the difference between authorized shares and shares outstanding?

Authorized shares are the maximum number of shares a company can legally issue, as set in its corporate charter. Shares outstanding are the shares currently issued and held by investors. The gap between authorized and outstanding shares represents potential dilution headroom — TRACE's Dilution Cone visualises this headroom alongside shelf and ATM capacity.

How does TRACE compare to DilutionTracker?

TRACE goes further than DilutionTracker by combining SEC filing data with real-time borrow conditions, computing composite scores (Supply Pulse, Borrow Pressure, TRACE Index), and providing evidence-linked provenance for every metric. All data links back to the source filing with timestamps and confidence levels.

What is a borrow rate in short selling?

The borrow rate (cost-to-borrow or CTB) is the annualised fee a short seller pays to borrow shares. A high borrow rate signals that a stock is hard to borrow, often preceding a short squeeze. TRACE's Borrow Pressure score (0–100) tracks borrow rate, utilization, and availability in one composite signal.

Market · 2026-05-14

PDT Rule Ends, Dilution Risk Rises

PDT rule ends June 4, impacting small-cap volume and dilution risk. Retail traders enter, but filing literacy lags.

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