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Re: Selkirkmtnman post# 1633

Monday, 02/02/2015 12:39:01 AM

Monday, February 02, 2015 12:39:01 AM

Post# of 2353
When people buy private placements the stock is issued directly by the company so he just gets a brand new certificate and they get the cash. While I'd like to see the shares bought on the open market to boost the price, when companies need money they do it this way. His downside is that he's an insider so can't even think about selling for six months and after that only piecemeal.

Since each time a company issues new shares it dilutes ownership so this theoretically depresses the stock price in the long run but not the short run.