24. Dilution of earnings occurs because A. A new issue of common stock creates more shares outstanding, which often reduces earnings per share temporarily B. The company suffers a decline in earnings after taxes C. The investment banker collects an underwriting fee D. All of the above options are correct 25. The market stabilization function usually A. Is performed by the issuing company B. Lasts six to nine months C. Provides price support for the stock during the distribution period D. Is illegal