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by nayuki 1073 days ago
> Dividends allow you to obtain money from the business without giving up control.

Nonsense. The business can choose to issue new shares whenever it pleases. https://en.wikipedia.org/wiki/Follow-on_offering

1 comments

Maybe I missed something but both of those involved giving up some control?

If I issue new shares and sell them, that is diluting my voting rights.

If I sell some of my existing shares, that is diluting my voting rights.

What have I missed?

Just to re-iterate, this is from the perspective of a shareholder wanting to bring some cash back to my personal bank account. Not trying to add more funds to the business (which a dividend is the opposite of).