| Shareholder | Shares | Percentage |
|---|
Equity dilution occurs when a company issues new shares, which reduces the ownership percentage of existing shareholders.
Dilution typically happens when a company raises new capital by selling additional shares to investors.
An Employee Stock Option Pool (ESOP) reserves shares for future employees, which can dilute existing shareholders' ownership.
A capitalization table (cap table) is a spreadsheet showing the equity ownership capitalization for a company.