- 1). Determine the number of shares of common stock you own of a company and the total number of common shares outstanding. You can find the total number of common shares outstanding on any financial website that provides stock quotes.
- 2). Divide the number of shares you own by the number of shares outstanding. For example, divide 1,000 shares you own by 500,000 shares outstanding. This equals 0.002, or a 0.2 percent ownership of the company.
- 3). Add the amount of new shares a company has issued to its previous number of shares outstanding to determine its new number of shares outstanding. A company can sell new shares to the public in a secondary offering, which is a stock sale after its initial public offering that it uses to raise additional money. For example, add 100,000 new shares issued to 500,000 previous shares outstanding. This equals 600,000 total shares currently outstanding.
- 4). Divide the number of shares you own by the new number of shares outstanding to determine your new percentage ownership of the company. For example, divide 1,000 shares by 600,000 shares outstanding. This equals 0.0016, or a 0.16 percent ownership.
- 5). Subtract your new ownership percentage from your old ownership percentage to calculate the effect of the equity dilution on your percentage ownership. For example, subtract 0.16 percent, or 0.0016, from 0.2 percent, or 0.002. This equals 0.0004, or 0.04 percent, which means your ownership stake decreased by 0.04 percent as a result of the equity dilution.
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