Through disciplined investing, Ella now owns 10% or 60,000 shares of PharmaONE. Although she has enjoyed a lot of control, she realizes that in order for the firm to acquire the funds to grow in a recessionary economy, it will need to issue more stock. Her regret is that it will dilute her ownership.

Question

Quizplus · Accepted Answer

When company boards of directors vote to issue additional stock for public sale, the disadvantage is that there is dilution of ownership. Owners usually have one vote per share of ownership.

Through Disciplined Investing, Ella Now Owns 10% or 60,000 Shares