Kahn Academy - Dilution

“Stock Dilution”

Resource Details

When

Anytime

Where

Online

Cost

Free

Program Rating

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  • Star Filled In Star Half Star
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  • Star Filled In Star Half Star
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  • Star Filled In Star Half Star
Description

When companies issue new shares, many people consider this a share “dilution”–implying that the value of each share has been “watered down” a bit. This tutorial walks through the mechanics and why–assuming management isn’t doing something stupid–the shares might not be diluted at all.

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