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:

Athletic Performance

The level of achievement or competence displayed by an athlete or sports participant in competitive settings.

Obsessive-Compulsive Disorder

A mental disorder characterized by unwanted repetitive thoughts (obsessions) and actions (compulsions).

Antidepressants

Medications prescribed to treat depressive disorders, anxiety disorders, and sometimes chronic pain, by adjusting levels of neurotransmitters in the brain.

Prozac

A brand name for fluoxetine, a selective serotonin reuptake inhibitor (SSRI) used to treat depression, obsessive-compulsive disorder, and several other psychological conditions.