How can a publicly traded company issue new shares?
Submitted by admin on February 21, 2010 – 2:09 amNo Replies
A web user asks, How can a publicly traded company issue new shares?
Please explain how a publicly traded company can issue new shares? As an example, if you have a pizza pie and you slice it into 8 pieces and then decide to slice again but this time in 16 slices, bottom line you do not end up with more pizza. How is it possible then that a publicly traded company can issue more shares and hence dilute the existing shares?
Can you help them out? Post your advice!
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