Assuming the company is not in danger of falling apart, and the company is stable or even thriving… how does share Dilution benefit the shareholders?
Or is share Dilution considered a last resort for the company to stay a float?
I am sorry, but I really don’t know how common share Dilution is to be issued and the reasons behind it.
In: Economics
Share dilution can allow a company to obtain more capital which would typically be used to expand operations, hopefully increasing the valuation of the company overall. The company might be doing “fine” or even growing, but if they could grow *faster* then that could benefit the shares of the initial shareholders even if their proportion of ownership reduces.
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