Minerco Inc (fka MINE)

[WrenchHead]

The Authorized Share increase has absolutely no effect on the day to day trading other than scaring ignorant investors/traders. The Authorized Shares could be increased to 200 billion and we would still trade at the same amount we are now.

The issue is when the Authorized Shares are issued by the company in the form of restricted shares or when the company sells them to the public to raise capital (diluting). Restricted shares do not immediately affect the price per share because there will be restrictions on when they can be sold. The latter (selling to the public) will have an immediate effect on the PPS because those shares add to the float. The float being the most important thing that affects the PPS (nonwithstaning news, PRs, market impression of company, etc.).

If the company dilutes then it is adding shares to the float which is usually followed by a decrease in PPS. That is of course unless it is for a good reason and the market agrees with it.

So back to the topic, an increase in Authorized Shares does not have an immediate effect on the PPS. Can it down the road? Maybe, it just depends on what the company does with them.