Franklin, TN asked in Business Law for Tennessee

Q: what is a collective mark? Dilution in value?

a test for a class. and examples.

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1 Lawyer Answer

Mr. James Charles Wright

Answered
  • Knoxville, TN
  • Licensed in Tennessee

A: A collective mark is a type of trademark owned not by an individual or company but by a collective group- so that each member of the group can use the mark. For example the wool trade mark or cotton trademark.

Dilution in value .. equity dilution in value occurs whenever more stock is issued. An example you own 10 shares and your friend owns 10 shares of stock. The company then issues 20 more shares. You went from owning 50% of the company to 25%. Your interest has been diluted. Dilution can also happen by additional stock being issued at a lower value or a stock split and your stock is lower in value.

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