5. What’s equity dilution and how does it work?

Quick Answer:
Dilution happens when new shares are issued, reducing each existing owner’s percentage.

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Learn More:
While dilution decreases ownership proportion, it can increase total company value. For example, new funding can expand operations and improve valuation. Tracking both percentage ownership and total value ensures a realistic view of equity growth. Findex visualises dilution dynamically so founders and investors can assess its long-term impact.‍

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