After reading through all the comments in the dilution thread I think I finally understand:
The value of a stock is determined by what people are willing to pay for it on the market, and if a company simply issues more stock, its entirely possible that the price of the stock will go up, go down, or stay the same.
This is of course only true for public companies, and in the case of private companies dilution is a completely different issue.
The value of a stock is determined by what people are willing to pay for it on the market, and if a company simply issues more stock, its entirely possible that the price of the stock will go up, go down, or stay the same.
This is of course only true for public companies, and in the case of private companies dilution is a completely different issue.