Companies issue stock all the time. Ideally, if a company issues, say, $1B in stock, its so they can use that money on projects that will return >$1B in value. In that case, everyone's happy because the dilution in shares in more than counteracted by the increase in revenue.

There are limits - I would assume the SEC has the ability to approve or deny new issuance of shares. If you have 1 million outstanding shares, they would probably frown upon a filing to issue 1 billion more shares.