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You own 1,000 shares of Tech, Inc., common stock, that you purchased 5 years ago for $5 per share. Tech is authorized to issue 1,000,000
You own 1,000 shares of Tech, Inc., common stock, that you purchased 5 years ago for $5 per share. Tech is authorized to issue 1,000,000 shares of $1 par value common stock. On January 1, 2021, Tech has, issued and outstanding, 250,000 shares of common stock at a market price of $15 per share. Tech's Board of Directors has approved the issuance of 100,000 shares of common stock. What would be the effect(s), to you personally, of this new issuance? (Use the rights of common stockholders to assist you with your answer.)
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