as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
how does stock dilution work in relation to share volume?
user
let me answer with an extreme example - i own the one single share of a company, and it's worth $1m. i issue 9 more shares, and find 9 people willing to pay $1m for each share. i know find my ownership dropped by 90%, and i am now a 10% owner of a business that was valued at $1m but with an additional $9m in the bank for expansion. (total value now $10m) obviously, this is a simplistic view, but no simpler than the suggestion that your company would dilute its shares 90% in one transaction.
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