> Then why is it, one year later (and more stock has been issued/other investors have come in), I have less than 10%?
Because other stock has been issued.
Companies can sell "new stock" or "old stock". Selling new stock dillutes. Selling old stock doesn't.
Suppose that you own 20 out of 200 shares. If the company sells 100 of those 200 shares, you still own 10% because the number of shares hasn't changed. If the company creates 100 and sells new shares, you now own 6.66% because the number of shares has changed to 300.
I was using the question to illustrate a point, but thank you for that wonderful explanation :)
I simply meant to point out that there are things that are not immediately obvious to people who are not actively involved in this area, and it may take several dozen well-written paragraphs such as yours to bring people up to speed.
Because other stock has been issued.
Companies can sell "new stock" or "old stock". Selling new stock dillutes. Selling old stock doesn't.
Suppose that you own 20 out of 200 shares. If the company sells 100 of those 200 shares, you still own 10% because the number of shares hasn't changed. If the company creates 100 and sells new shares, you now own 6.66% because the number of shares has changed to 300.