All else equal, new shareholders will ____ the capital gains of existing shareholders.

Name: All else equal, new shareholders will ____ the capital gains of existing shareholders.
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Question

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When new shareholders are added through the issuance of new shares, the ownership of the company is diluted among more shareholders. This can lead to a decrease in the value of each share and ultimately result in a smaller capital gain for existing shareholders.

All Else Equal, New Shareholders Will ____ the Capital Gains