Company-wide growth does not guarantee per-share growth.
| Concept | Explanation | |---|---| | Basic shares | Weighted-average common shares currently outstanding. | | Diluted shares | Basic shares plus potential shares from options, convertibles, or awards. | | Primary issuance | New shares sold by the company. | | Secondary sale | Existing holders sell shares; company may receive no proceeds. | | Dilution rate | Growth in diluted shares over time. | | Per-share economics | Company value or earnings divided across the share count. |
Company-wide growth does not guarantee per-share growth. If revenue rises 10% but diluted shares rise 15%, an existing shareholder's claim can deteriorate.