The moment an organization issues additional stock to new shareholders, it can decrease the value of existing investors’ shares and their ownership of the company. This problem is termed dilution. Stock dilution is also sometimes referred to as equity dilution. Fundamentally, It is a risk that investors must be conscious of as shareholders. Also, they … Continued
Category: Stock Dilution
We help business owners realize their dreams by providing full company incorporation, share management and valuation
services to startup companies. Our blog is the best place to learn about valuation, equity, and the Eqvista product.
One of the most important things that any startup executive will come across when discussing about the company shares is stock dilution. Stock dilution in a company decreases the equity ownership of the existing shareholders when new shares are issued, be it to investors, employees, advisors, and others. There are also other ways equity dilution … Continued