Does a corporation raise money from selling stock?

Question

If so, how do you calculate the amount of money raised? (For a new company)

Answer 1

Yes, the company can make money by selling additional shares.

However, as the company issues new shares, the value of the shares already outstanding is diminished proportionally.

1 - (shares outstanding / shares outstanding + new shares) * share price = the new value of the shares.

new share price * # new shares = additional money collected by the firm.