i need the dilution formula?



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cant understand the dilution that u thought in private & public companies

1 Answer(s)


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Lets assume you own 100% of a company. Then a new investor comes and you have to give him 20% then your share now is 100%-(20%x100%)=80%
Now lets say another investor comes in and needs 20% of your compay, then you share is 80%-(20%x80%)=64%
Its a simple multiplication. There is no complicated formula for this.