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rasta48

04/21/11 3:52 PM

#5165 RE: TONYTOHI #5164

Dilution is when additional shares are issued.

When an equity investor brings cash to a company they are issued additional shares at a discount to the market value. They are issued at a discount to entice the equity investor. They would not be issued at market price or there would be no reason to invest money directly, they could just purchase shares on the open market.