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When we enter the world of stocks or become investors, we encounter various terms that are important to understand. One of these is equity dilution, where an issuer issues new shares, increasing the number of outstanding shares. This results in a decrease in the percentage of ownership for each investor, a reduction in an investor's voting rights, and a reduction in the earnings per share (dividends).
When undertaking equity dilution, issuers must of course have carefully planned and thought through the process. So, in your opinion, why do issuers need to undertake equity dilution?
When undertaking equity dilution, issuers must of course have carefully planned and thought through the process. So, in your opinion, why do issuers need to undertake equity dilution?
