Monday, January 31, 2011
What Is Stock Dilution in a Private Placement Offering?
When an investor acquire stock in your corporation, you demand to identify what their shares are worth today. Stock dilution occurs when a corporation decides to raise capital by issuing more stock to fresh investors. When the "float" (the amount of shares outstanding) is increased, the investors who already own shares immediately have a smaller percentage of shares. More information: click
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