Question

If you own 200,000 shares of stock in a company with 8 million shares outstanding and the company issues an additional 2 million shares to its employees through a stock purchase plan, your ownership percentage:

A) remains the same because the company now has more assets.

B) falls from 2.5% to 2%.

C) remains the same because the company now has fewer liabilities.

D) increases because the company now has more stock outstanding.

Answer

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