[jallen_dot_dev]

No, the company becomes more valuable after the raise. It's more slices of a bigger pie == each slice is the same size as before.

> why would a company ever do a stock buyback if changing the amount of issued stock didn't change the price?

The company used its cash to buy its own stock. Fewer slices of the same pie == each slice is bigger than before.

[ImPostingOnHN]

The company is worth what it's worth, according to investors, no matter how many slices you piece it up in. If you issue more shares, people will be willing to pay less for each one. Yes, adding cash to the balance sheet increases the book value, but the only way to add that cash is to sell the new shares, and the only way to sell the new shares is to offer them for cheaper than the current asking price.

Put another way, if prospective investors wanted to buy more shares at the current asking price, they could, from an existing owner. The people who want shares but haven't bought, demand a lower price for them.

[fsckboy]

the company is worth MORE when people buy the new stock shares.

Let's say you have a company worth $2 and you have two shareholders, each with one share. So that's a dollar a share, right? Now you sell a third share for a dollar. The company that was worth $2 is now worth $3 because it has its old assets that were worth $2, and it has NOW has a dollar in cash that it didn't have before. Now it's a $3 company. This is not advanced analysis, this is simple counting. Trust me, I know how it works, I got a graduate degree in it, and you're simply wrong.

what you may be thinking of is when the company issues shares and gives them as incentives/rewards to officers/directors/employees. That does dilute ownership, but sale of shares does not.