Nitzan, Jonathan2022-11-252022-11-251996The "Dilution Effect" and Emerging Markets. Nitzan, Jonathan. (1996). Emerging Markets Analyst. Vol. 5. No. 1. May. pp. 12-21. (Article - Magazine; English).http://hdl.handle.net/10315/40291capitalization dilution discounting equity emerging markets earnings investment liquidity present value valuationContrary to the conventional wisdom, rapid growth in real investment is not necessary positive for equities. In emerging markets, the need to finance large-scale capital formation creates a wave of initial public offerings and privatization, which turn “dilute” the relative share of existing equities. Over time, changes in pace of IPOs and privatization tend to alter the effect of liquidity and earnings on equity prices.Article