Hint mode is switched on Switch off

Additional issue of shares

Category — General Notions

An additional issue of shares is a process when a company issues additional shares into circulation to already existing shares, as a result of which the shares of shareholders are diluted.

The purpose of the additional issue is to receive “free” money (money that does not need to be returned) so that it can be directed to the implementation of new projects, expansion of current activities, modernization of production, or other purposes.

An alternative to an additional issue may be a loan, but not always a financial institution can approve it to the issuer or the proposed conditions are unfavorable for the issuer. Therefore, an additional issue makes it possible to raise funds on conditions convenient for the issuer (and without interest).
Another reason for the additional issue is the consolidation of the authorized capital in the hands of the majority shareholders, since at the legislative level they have the right of first priority to acquire additional shares.

With an additional issuance, there is an increase in the total number of shares, which leads to a decrease in earnings per share and the payment of a dividend per share. These changes may negatively affect interest in the company in terms of investment and reduce quotes, which in turn will lead to a decrease in capitalization.
Terms from the same category

explore the most comprehensive database

800 000

bonds globally

Over 400

pricing sources

80 000


9 000


track your portfolio in the most efficient way
Bond Search
Excel ADD-IN

— Are you looking for the complete & verified bond data?

— We have everything you need:

full data on over 700 000 bonds, stocks & ETFs; powerful bond screener; over 350 pricing sources among stock exchanges & OTC market; ratings & financial reports; user-friendly interface; available anywhere via Website, Excel Add-in and Mobile app.



You will have detailed descriptive & pricing data for 650K bonds, 76K stocks, 8K ETFs
Get full access to the platform from any device & via Cbonds app
Enhance your portfolio management with Cbonds Excel Add-in
Build yield maps, make chart comparison within a click
Don't wait any longer — start using Cbonds today! Register
Registration is required to get access.