Stock Dilution happens when the Corporation issues new shares/stock thus causing the shareholders ownership to decrease.
EX. ABC Corp has 1,000,000 shares outstanding. You, the shareholder, owns 10% (100,000) of ABC Corp. ABC Corp now issues another 1,000,000 shares. You now own 5% of ABC Corp. most shareholders find stock dilution to be “bad for business.”
Stock buy back is when ABC Corp buys back its own shares/stock. This is seen as a vote of confidence for the shareholders, and it also increases the remaining shareholders ownership stake in the corporation.
EX. ABC Corp has 1,000,000 shares/stock outstanding. You own 10% (100,000) of ABC Corp. ABC Corp now buys back 100,000 shares/stock. ABC Corp shares/stock outstanding has now been decreased to 900,000. You now own 11.2% of ABC Corp.
Romane Orlando Robb (MBA (c) Corporate Innovation and Entrepreneurship, MA (c) Project Management) is the Founder, Chairman, and CEO of Robb Corporation; a global thinking investment holding firm with subsidiaries in, but not limited to; media and entertainment, food and beverage, private equity, venture capital and wealth management, sports marketing and management, government contracting, technology, real estate, telecommunications, cyber security, fashion, and retail, and logistics and shipping. He's also a filmmaker, full-stack software engineer and developer (Java, React, .Net, SQL, Azure, Amazon Web Services, JavaScript, Material UI, Bootstrap, and GitHub Actions), music executive, management consultant, marketing executive, blogger, media personality, sports agent, fashion designer, and published author.
