Please help me with the following statement: “By issuing new shares at a high price, a company will reduce the number of shares it must issue to raise the amount of capital it wants. This will reduce the dilution of earnings for existing shareholders.
The more shares that they issue then the lower the earnings per share (the profits divided by the number of shares).
(The wording of what you quoted is terrible – issuing more shares dilutes the earnings. Dilutes means reduces, so ‘reducing the dilution’ is nonsense 🙂 )