Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

How does a public company issue new shares without diluting the value held by existing shareholders?
In simplest terms, when a company creates new shares and sells them, it's true that existing shareholders now own a smaller percentage of the company.  However, as the company is now more valuable (since it made money by selling the new shares), the real dollar value of the previous shares is unchanged. That said, the decision to issue new shares can be interpreted by investors as a signal of the company's strategy and thereby alter the market price;  this may well affect the real dollar value of the previous shares.  But the simple act of creating new shares does not alter the value in and of itself.