CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

Examples of dilution of ownership in venture capital transactions include:

I. A financing round.
II. Issuance of stock options to the management.
III. Issuance of stocks to the management.
Correct Answer: I, II and III

User Contributed Comments 4

User Comment
alai2008 if the options are in the money there is capital dilution if they are out-of the money there is potential dilution
bablig Can some one explain this in details pls
arudkov each ot the answers will lead 2 decrease of %% of stock of initial investor.
birdperson all lead to more equity being issued, and consequently dilution
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