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Thursday, 11/02/2017 11:48:55 AM

Thursday, November 02, 2017 11:48:55 AM

Post# of 30846
How does the par value work? Zero par is set at 0.0. At anytime the stock is forward split the authorized shares are doubled. This is not the issued shares only that are doubled. All authorized shares are moved in increments of 10.

An example is you have zero par value 0.0 and it’s incremented to a par value of .001 that would be multiplying the authorized shares by a 100 decreasing the authorized shares value by a 100 times.

Because a contract of purchase for the authorized shares has been implemented at the start of the sale or set if you like and because of the circumstantial situation changing along the process of the sale the seller and early purchasers have to be compensated because of depreciation revenue brought on by debt plus the additional revenue brought on in addition too pre paid administration fees yet to be amortized.

I guess what I’m trying to say is if the market does not reflect the book value of the underlying equity then the company has the power to adjust the offering as see fit to protect its investors.

As with anything the reaction time is not always consistent with the market. This inconsistency leaves opportunity open to investors to take advantage of market conditions. Anytime an adjustment is made there is a requirement that a filling as well an accompanying financial filling must pursue. If the offering is over perscribed as often is the case then any sales of equity is recorded as revenue.

Remember that all sales must go through the brokers hired by the company to exercise there interest. The administration charges can be diluted by the issuing of a over prescribed offering to the broker in compensation to those charges.

It is a very complex procedure of events that take place. Good luck your DD is most important in anylizzing market opportunities when they arise.

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