Is there a total number of shares distributed?

Question

When a company makes a share available, is that a unit of a larger whole?

Meaning, say, a company is worth $100 and wants to offer 50% shares. Does that mean it makes 50 shares available, at $1 per share?

What happens when it wants to offer more for purchase, say an extra 10%, does that dilute the value of other shares?

Answer 1

Does that mean it makes 50 shares available, at $1 per share?

Maybe.

• Or 5 shares at $10/share,
• or 10 shares at $5/share,
• or even 1 share at $50/share.

What happens when it wants to offer more for purchase, say an extra 10%, does that dilute the value of other shares?

Yes. This is why the current owners must vote on whether or not to issue more shares.

They might offer themselves the opportunity to buy the shares before the public does, possibly at a discount.

And if the vote was to sell more shares, minority owners who lost the vote might file suit to try and prevent it.