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Re: laker5 post# 15726

Saturday, 11/12/2016 3:39:43 PM

Saturday, November 12, 2016 3:39:43 PM

Post# of 18499
Wrong again.

Let's say there are 100 shares outstanding of a company's stock and I own 1 share. This means I own 1/100 of the company or 1% or the shares.

The company now offers 100 additional shares at market which are purchased by other investors. There are now 200 shares outstanding. I still own my 1 share, which means I now own 1/200 of the company, or 0.5% or the shares. My ownership in the company has been DILUTED due to the issuance of the new shares.

Happy to explain any other basic concepts anytime.
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