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Financial costs include interest and the dilution of ownership.
In a conventional share flotation, the price shares will fetch is an important issue for the seller, which needs to balance the interests of existing owners in raising cash against the dilution of ownership involved in expanding the share base.
According to Federal Law No. 217, the college owned 33% of shares with no dilution of ownership possiblei.
A high equity ratio can signal an unfeasibly high cost of capital (because equity costs more than debt) and dilution of ownership.
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iNo-dilution of ownership was changed in 2013; however, this rule applied for SIEs created before this year.
Dilution of stock ownership can occur when managers exercise their rights (Sigler, 2009, p. 764).
Finally, to off-set the dilution of stock ownership that can occur when managers/executives exercise their stock options, companies may "buy back shares at the market price" (Sigler, 2009, p. 764).
"The dilution in ownership claims of future innovations may lead inventors to pursue less ambitious projects, or alternatively leave the firm to implement their ideas in a private firm setting where they can capture a larger fraction of the returns for their innovation," he writes.
Lack of a lead agency for road safety results in dilution of responsibility for road safety and lack of ownership of the problem.
Instead of elbowing out rivals in Khodorkovsky's uninhibited fashion -- on one occasion, Khodorkovsky reportedly moved a shareholder meeting to a new location secretly and at the last minute so that minority shareholders would not be present to vote against the dilution of their holdings -- Alekperov shared ownership with a larger pool of managers, bureaucrats, investors and workers.
Create a sense of ownership.
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