Issue of Shares

Share on facebook
Share on twitter
Share on linkedin
Share on email

When a startup issues shares, it ‘creates’ additional shares to give to an investor as an exchange for their financial investment in the company. Since these shares are being newly created, they are an addition to the number of initial shares. Like that, the number of shares each previous shareholder possessed remains the same, while the percentage they own changes. This is called dilution.

Dilution represented with drawings

Join the Hero Community

Apply for startup jobs today!

Was this article helpful?
Related Wikis
The meaning of Market capitalization
Secondary shares
Bootstrap
Initial Public Offering
Scaleup
Board of directors
Related Jobs
Subscribe to our newsletter!

Thank you for subscribing!

You can edit your job alert preferences in the link we sent you via email.