This is what ChatGPT gave me when asked to explain it in laymans terms.
Sure, here's an explanation of how dilution impacts the shares someone owns in a stock in layman's terms:
Imagine a company as a big pizza with 10 equal slices. If you own one slice, you have 10% of the pizza. Now, suppose the company decides to issue 5 more slices, making a total of 15 slices of pizza. You still own your one slice, but now it's just 1 out of 15 instead of 1 out of 10. So, your ownership percentage drops from 10% to about 6.7%.
In the stock market, this "pizza" represents the total number of shares of a company. When a company issues more shares, the total number of shares increases, which can reduce the ownership percentage of existing shareholders. This is called dilution. Essentially, your piece of the company becomes smaller because there are more pieces (shares) now.
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This is what ChatGPT gave me when asked to explain it in laymans...
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