Which of the Following Is NOT a Type of Dilution

question 111

Multiple Choice

Which of the following is NOT a type of dilution that may be associated with new equity offerings?

• A) Dilution of book value.
• B) Dilution of market value.
• C) Dilution of proportionate ownership.
• D) Dilution of earnings per share.
• E) Dilution of venture capital.

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Definitions:

Secondary Market

The secondary market is where investors buy and sell securities they own from each other, rather than directly from the issuing company, including stock exchanges and over-the-counter markets.

Stock Exchange

A marketplace where stocks and other securities are bought and sold, facilitating the transfer of securities among investors.

Initial Public Offering

The first sale of stock by a private company to the public, typically used to raise capital for expansion.

Common Shareholder

A common shareholder is an individual or entity that holds common stock in a corporation, granting them voting rights and a share in the company's profits through dividends.