Stock dilution | Stocks and bonds | Finance & Capital Markets | Khan Academy

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Why the value per share does not really get diluted when more shares are issued in a secondary offering. Created by Sal Khan.

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Finance and capital markets on Khan Academy: When companies issue new shares, many people consider this a share "dilution"--implying that the value of each share has been "watered down" a bit. This tutorial walks through the mechanics and why--assuming management isn't doing something stupid--the shares might not be diluted at all.

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