Cut that slice in half: Dilution and Pizza

Building on the totally tubular authorized, issued, and outstanding shares (pizza slices) post from two weeks ago, this post discusses a simple dilution example to help highlight the basics.  Leonardo’s Pizza Parlor has 5,000,000 Authorized Shares; it has 1,000,000 shares outstanding.  Let’s assume you own 100,000 shares of  the Company – or 10% of the … Read more

There is Only One Pizza – But the Number Of Slices is Up to You

This is the first post in a series about dilution.  Before we start down that path though, lets start with some simple background information. The key to understanding dilution comes with three simple words: Authorized, Issued, and Outstanding (shares). Authorized Shares means the total (read, total ever) shares a Corporation can create or “cut itself into.”  If … Read more

DISCLAIMER: The information provided is for general informational purposes only. Posts and other information may not be updated to account for changes in the law and should not be considered tax or legal advice. None of the articles or posts on this website are intended to create an attorney-client relationship. You should consult with legal and/or financial advisors for legal and tax advice tailored to your specific circumstances.