In general,issuing equity may not dilute the ownership of existing shareholders if:

Question

Quizplus · Accepted Answer

Issuing equity will not dilute the ownership of existing shareholders if the new shares are sold at a fair price. This means that the price of the new shares reflects the true value and potential of the company, and existing shareholders are not losing any value by the issuance of new shares. The other options (A, C, D, and E) do not necessarily guarantee that the ownership of existing shareholders will not be diluted.

In General,issuing Equity May Not Dilute the Ownership of Existing