So let's say a company with 100 stocks, you have 10 so you get 10% ownership. Now let's say they issue 100 additional stocks to raise more capital...this means you now have 10/200 = 5% of the company. Your holdings are diluted and the stock price itself will fall.
Is my understanding of bonus issues of stocks correct as per above, or am I missing something?
Submitted February 25, 2017 at 01:00AM by learner1314 http://ift.tt/2mnjezQ
No comments:
Post a Comment