The most obvious weakness in stock dilution is that it reduces the ownership percentages

• The most obvious weakness in stock dilution is that it reduces the ownership percentages of the existing shareholders, wherein possible voting power and influence over corporate decisions are also claimed to have been diminished. • Increase in the share issued by a company increases the number of shares that its earnings are spread over; thus, it can reduce earnings per share. • Potentially, this dilution of the earnings could affect the price that the market puts on shares in the company and its perceived worth.