I've been searching for a while and can't quite find an answer to these newbie questions.
When a company raises capital via a new issue or share purchase plan, the SP can subsequently fall due to 'dilution' of existing shares, right? How does this work... is it simply a matter of available shares (supply) increasing while buyers (demand) remain static, which drives the price down? Or is it something more tangible like the SP somehow being recalculated during the process?
Or... does it have something to do with the new shares being offered at a discount to the current price?
Thanks for any insights into this!