Company a has 100 shares and I own 10 shares or 10%.
The company raises more capital and anther 20 shares are issued, the only way I don't get diluted is to add more of my capital, 1 must purchase another 2 shares to still retain 10% of the company.
Buy adding extra capital and still only retaining 10% my original holdings have been diluted.
is the pressure cooker about to explode?, page-34
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