Is “Diluted” a Scrabble word?

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Yes
DILUTED
Valid in at least one Scrabble dictionary

Valid in these dictionaries

SOWPODS / CSW
Scrabble UK & International
Valid
TWL / NWL
Scrabble North America
Valid
Large English Dictionary
General English word list
Unavailable

Meaning of Diluted

verb
  1. 1.To make thinner by adding solvent to a solution, especially by adding water.

  2. 2.To weaken, especially by adding a foreign substance.

  3. 3.To cause the value of individual shares or the stake of a shareholder to decrease by increasing the total number of shares.

adjective
  1. 1.That has had something added in order to dilute it.

    diluted orange juice