How does stock dilution hurt investors? Simply put: the company issues new shares → your ownership percentage decreases → EPS( falls → the stock price may follow suit.
The core mechanisms are as follows:
**Ownership is diluted**: Originally, 100 shares accounted for 1% of the company, but now it has changed to 0.5%, which naturally reduces the influence in the company's decision-making.
**EPS fall**: The total amount of dividends remains unchanged, but more shareholders are included, resulting in less money per share. Most stock price valuations are linked to EPS, so this round of operatio
View OriginalThe core mechanisms are as follows:
**Ownership is diluted**: Originally, 100 shares accounted for 1% of the company, but now it has changed to 0.5%, which naturally reduces the influence in the company's decision-making.
**EPS fall**: The total amount of dividends remains unchanged, but more shareholders are included, resulting in less money per share. Most stock price valuations are linked to EPS, so this round of operatio