Through disciplined investing, Alyssa now owns 10% or 50,000 shares of a small biotech company. 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

Issuing more stock will increase the total number of outstanding shares, which will lower Alyssa's percentage ownership and therefore dilute her ownership.

Through Disciplined Investing, Alyssa Now Owns 10% or 50,000 Shares