When/how do companies increase the number of shares once they’re on the market?

  • When a company gives stocks as part of the overall compensation plan, are they creating these stocks out of thin air (dilution) or are they using shares owned by the company? If both, which is more common?
  • Do companies report when they've created shares out of thin air to the SEC? If so, is it a quarterly report or do they report as soon as it happens?
  • What are some companies that notoriously diluted their shares?
  • What are companies that have never done it?


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