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A corporation may decide to sell a new class of shares to new investors. As the managers of the corporation, the board of directors will

A corporation may decide to sell a new class of shares to new investors. As the managers of the corporation, the board of directors will generally approve such investment. Shareholders, however, may also have an approval right for the corporation to sell more shares to new investors. If more shares are sold to new investors their share ownership is diluted and they own a lower percentage of the stock of the corporation.

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