THE MOST OBVIOUS WEAKNESS IN STOCK DILUTION IS THAT IT REDUCES THE OWNERSHIP PERCENTAGES OF THE EXISTING SHAREHOLDERS

The most obvious weakness in stock dilution is that it reduces the ownership percentages of the existing shareholders

The most obvious weakness in stock dilution is that it reduces the ownership percentages of the existing shareholders

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  • The most obvious weakness in stock dilution is that it reduces the ownership percentages of the existing shareholders, wherein possible voting power and influence over corporate decisions are also claimed to have been diminished.


Increase in the share issued by a company increases the number of shares that its earnings are spread over; thus, it can reduce earnings per share

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