[DcifrThs]

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Here is a n00b question that maybe you can answer.

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i'll sure try. any questions ranging form n00b to expert are appreciated.

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As I understand it, a company goes public to raise capital.
Now let's say I buy 10% of the share so I'm basically owning 10% of that company. So how is it that some years after the IPO, the company can decide to "release more shares" to raise more capital. Surely that's not fair to the current shareholders because once they do that I own less than 10% of the company.

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as i understand it, owning 10% of the company doesn't give you a say large enough to prevent future dilution of your holdings should the company choose to raise money via additional shares.

it may not be "fair" in terms of your ownership %, but it may be best in terms of the value of your holding. the management team (presumably) feels this influx of capital will serve the shareholders' interest. the management team also likely has a share of the company so they are diluting their own interest as well.

if others have better insight, please chime in.

hope this helps,
Barron