Yesterday, 11:26 AM
How does an investor determine whether there is a dilution possibility? The first thing is to check on the outstanding shares of the company before and after the issuance. Whenever there are new shares being offered, the proportion of the shares that the shareholder owns gets diluted. This makes it easy for one to understand the dilution definition. In addition, the effects of the new capital on the operations of the firm must be considered.
