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Re: Suvorov post# 39469

Wednesday, 04/03/2019 10:03:07 PM

Wednesday, April 03, 2019 10:03:07 PM

Post# of 236704

"non dilutive financing.."

Kindly please define the term; as far as I can see the description is an oxymoron.




https://www.investopedia.com/terms/d/dilution.asp

What is Dilution?
Dilution occurs when a company issues new stock which results in a decrease of an existing stockholder's ownership percentage of that company. Dilution can also occur when holders of stock options, such as company employees, or holders of other optionable securities exercise their options. When the number of shares outstanding increases, each existing stockholder owns a smaller, or diluted, percentage of the company, making each share less valuable.

https://www.upcounsel.com/non-dilutive

Non-Dilutive: What is it?
Non-dilutive usually refers to the type of financing for a business where they do not lose any equity in the company. Non-dilutive financing means that they receive money for the business without giving away any ownership of the company itself.

Dilutive Versus Non-Dilutive Financing
Dilutive financing is any kind of fundraising where you give up ownership of your company. Examples of dilutive financing would be selling shares to angel investors or venture capitalists.

Non-dilutive financing is the type of fundraising where you do not have to give up shares of your business. This could be anything from a loan from a bank or a grant from your state's economic development agency.
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