Joe and Mary created a company, jointly invested $2, issued 2 shares and own 50% of a company each. Each share worth $1. Bill [Gates :)] comes in and convinced

Joe and Mary created a company, jointly invested $2, issued 2 shares and own 50% of a company each. Each share worth $1. Bill [Gates :)] comes in and convinced Joe and Mary to sell him 50% of company for $1,000,000. Joe and Mary issued 2 more shares (4 total shares now) and gave them to Bill in exchange for $1,000,000. OMG, Joe and Mary just diluted themselves in half to 25% each! But the difference is of course is that each share now cost $250,000.50, instead of previous $1.