What I always heard, since I was a child, was that if you own a stock share, you actually own a small share of a company. That seems to be the general consensus of what a stock share is.
Well, that said, let's assume I have 10 out of 100 shares of a company. If that company issues another 100 shares, shouldn't 10 of those new 100 shares be mine? Apparently it is not, and my ownership of the company is halved. How can they take 5% of the company from me without paying its due value? Shouldn't it be illegal?
I am certain I have some misconceptions on how these things work. How is it really done?