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.

---

Definitions:

Descriptive Research

A research method aimed at describing characteristics of a population or phenomenon being studied without influencing them.

Field Experiments

Research studies conducted in natural settings outside the laboratory to understand real-life behaviors or phenomena.

Intrinsic Motivation

The drive to engage in an activity for its own sake, due to the personal satisfaction and fulfillment it brings.

Varied Skills

Refers to a wide range of abilities and competencies an individual possesses, which can apply to different tasks or job roles.