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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Suma who wrote (24622)	4/25/1999 1:14:00 PM
From: Paul Kelly	Read Replies (1) \| Respond to of 77397

Dilution refers to a lessening of your proportional ownership of a company.If you own 50% of a company you own 1/2 of the shares;you still would own 50% of the company after a two for one split but as a fraction it would be expressed as 2/4.So there is no dilution after a split, all other things being equal.The earnings per share would be half of what it was before but everyone has twice as many shares. So everyone's actual dollar portion of the earnings remains the same.Textbook writers might explain this better but they are paid better than I am to do it. Regards, Paul