Which statement is correct?
A)Out of the money stock options are the most dilutive.
B)Convertible bonds are the most dilutive.
C)Convertible preferred shares are the most dilutive.
D)In the money stock options are the most dilutive.

Question

Quizplus · Accepted Answer

In the money stock options are the most dilutive because they give the holder the right to buy the company's stock at a price below the current market price, which, when exercised, increases the number of shares outstanding and dilutes the value of existing shares.

Which Statement Is Correct