Dilution Score explained for investors

Definition

Dilution score is SEC API for AI's structured dilution-risk signal. It uses filing evidence and financing context to help identify companies where future share issuance or share-equivalent overhang deserves attention.

Investor read

The score should compress the triage problem, not replace the work. A high score means read the filings, terms, cash runway, and overhang before trusting per-share upside.

Where it appears

• Dilution signal APIs and enhanced dilution workflows.
• Small-cap, biotech, pre-revenue, distressed, and financing-monitoring screens.
• Watchlist alerts after offerings or capital-structure changes.

SEC API workflow

• Query the dilution score or enhanced dilution signal for a ticker.
• Use the returned evidence to open the source filings and terms.
• Pair score changes with cash runway, warrants, converts, reverse splits, and ATM programs.

Common traps

• Treating a score as a buy/sell recommendation.
• Ignoring source evidence and score drivers.
• Comparing scores without considering sector, stage, and capital intensity.

Key takeaways

• Dilution score is a triage signal.
• Evidence and drivers matter more than the number alone.
• It is strongest when combined with filing review and runway analysis.