All other things being equal, when banks issue new stock, they

Name: All other things being equal, when banks issue new stock, they
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When banks issue new stock, they increase the number of shares outstanding, which dilutes the ownership of the bank. All other things being equal, this means that each existing shareholder now owns a smaller percentage of the company. New stock issuance does not necessarily impact reported earnings per share or the bank's ability to absorb operating losses.

All Other Things Being Equal, When Banks Issue New Stock