Creative Edge Nutrition Inc (FITX)

[eelfland]

I'm not an accountant, but selling stock (or "equity") is not the same thing as selling whatever widgets you're making or marketing. "Sale of Equity," maybe. Perhaps in pinkyland companies forget that they're supposed to pretend to be selling something other than stock.

What would the stockholders have left if Bill sold 100% of the "equity" in the company for fifty million dollars and spent the money on himself? What good is "revenue" like that? Be aware, too, that when a percentage of equity is sold, it's not the same as selling stock, in that stock can be diluted simply by issuing and selling more stock. A percentage of equity stays the same, no matter how much stock a company issues and dumps. So for stockholders, that kind of "revenue" is a bad, bad thing.