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If you own 200,000 shares in a company with 8 million shares outstanding and the company issues an additional 2 million shares to its employees
If you own 200,000 shares in a company with 8 million shares outstanding and the company issues an additional 2 million shares to its employees through stock options, your ownership percentage:
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remains the same because the company now has more assets.
decreases from 2.5% to 2%.
remains the same because the company now has fewer liabilities.
increases because the company now has more shares outstanding.
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