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Generally Accepted Accounting Principles (GAAP) MCQs

What is meant by the term "dilution"?

It is just another term for common stock.

Common stock plus preferred stock

The number of shares that would be outstanding if all options and other contracts related to shares were executed

Common Stock and other equity

Answer

Correct Answer: The number of shares that would be outstanding if all options and other contracts related to shares were executed

Explanation:

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