Dilution of Ownership Occurs When a New Stock Issue Results

question 64

True/False

Dilution of ownership occurs when a new stock issue results in each present stockholder having a larger number of shares and, thus, a claim to a larger part of the firm's earnings than previously.

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Definitions:

Instincts

Innate, typically fixed patterns of behavior in animals in response to certain stimuli, stemming from biological necessity rather than learning.

Eastern Symbols

Icons or figures that represent ideas, concepts, or objects originating from cultures and regions located in the eastern part of the world.

Western Symbols

Icons, signs, or objects that represent specific meanings or ideas predominant in Western culture.

Isolated Fish

Fish that are kept or live apart from others of their kind, often leading to studying effects of isolation on behavior and health in aquatic organisms.