Shares of Take-Two Interactive (NASDAQ:TTWO) and First Solar (NASDAQ:FSLR) fell 9% and 11%, respectively, on Wednesday after raising money in ways that dilute common shareholders.

In this video, longtime Fool contributor Rick Munarriz explains the process but also reveals how new investors can sometimes profit from the transactions.

Give a hoot. Don't dilute.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Take-Two Interactive. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.