Equity Dilution occurs when a company issues more shares, reducing the ownership percentage of existing shareholders.

Companies often dilute equity when they need more money. By selling more shares, they can fund growth or pay debts. This means existing shareholders will own a smaller part of the company.

What is dilution of shareholding of the existing shareholders? Dilution of shareholding means current shareholders own less of the company. This happens after the company sells more shares.

What happens when a company issues more shares? When a company issues more shares, it raises more money. However, this also means each share now represents a smaller part of the company.

Why do companies dilute shares? Companies dilute shares to raise money. They might need this money for new projects, paying off debt, or expanding the business.

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Equity dilution can help a company grow without taking on debt. It can fund new projects or pay off existing debts.

Equity dilution lets companies raise money by selling more shares. While it reduces the ownership share of existing shareholders, it can also help the company grow.