Stock Dilution

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How does a company start with say 100 shares and value gets “crammed” down with more investment? If one party has five of those shares, won’t they always have the five shares and new investors get shares from some of the other 95? Are there shares that cannot get diluted? Golden shares or?

In: Economics

5 Answers

Anonymous 0 Comments

[This article](https://www.linkedin.com/pulse/how-issue-new-shares-step-by-step-guide-fareyaaraoui?utm_source=share&utm_medium=member_android&utm_campaign=share_via) gives a pretty decent and basic overview to answer your questions.

In short, it’s fairly complicated, layered, and nuanced.

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