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Re: EZmoney- post# 73611

Thursday, 08/27/2015 5:45:27 PM

Thursday, August 27, 2015 5:45:27 PM

Post# of 244529
KNSC - 10 Bill A/S - Climbs from 0.0001 to 0.0019

Authorized Shares 10,000,000,000 a/o Jun 25, 2013
Shares Outstanding 5,217,475,719 a/o Sep 01, 2013
Float______________3,017,475,719 a/o Jul 03, 2013

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=112505875


Educational Post - Dilution

Authorized Shares,
has no bearing on the price.

The "Shares Authorized",
is not used in any fundamental of financial calculation,
to determine company value.

OTC companies only have two things,
stock for sale and stories of progress.

Dilution:
when the company moves shares from the A/S (authorized shares)
to the O/S (outstanding shares) or tradeable inventory,
for cash investments in the company.

This means there are more shares
at the same market price
and reduces the size of the EPS.

It doesn't reduce the price or value of the stock.
But many pennylanders think it does.

Dilution
doesn't change price, it changes EPS.
Creating loss in company value, not stock value.

Hardly 1 in 1000 OTC companies have an EPS to effect.
So, dilution can't effect their company value in the first place.
What's the value of no earnings, thus no EPS.

On the OTC, "dilution" is the best news one can hear !

Not only does it give the company a chance at growth,
it doesn't effect their EPS value one bit.

They have no EPS to effect.
Plus, every time VCs get there hands on large amounts of shares,
they buy a run, and we can trade for profits !

So, "dilution" is a win for the company,
a win for the Venture capital firm,
and a win for the educated pennyland trader,
on the OTC.

Stocks of many start-up companies,
bottom at the "Sub-penny" and "Triple 000" price levels,
before they begin their meteoric rise.

"Venture Capitalists"
like to buy the shares of these companies at these low levels.




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