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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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Social Media

Platforms and websites that facilitate interactive and social communication among users, enabling sharing of content and ideas.

Stakeholders

Individuals or groups with an interest in or affected by the outcomes of a particular project, decision, or strategy.

Businesses

Organizations or enterprises engaged in commercial, industrial, or professional activities, aiming to earn profits.

Main Idea

The central or most important point that a piece of writing or communication is intended to convey.

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