On4 Communications Inc (ONCI)

[donnie broos]

Dumb question (and I'm sure it's been explained but I missed it): what the hell is a "share reduction" if not a buy-back or a reverse split? What shares "magically" disappear?

My question stems from this thought (which has subconsciously stuck with me ever since Steve pr'd the announcement) - theoretically, what if a "share reduction" is announced and then the entire float was bought and held. All the O/S is accounted for. What happens to those people's shares?

Secondly, IF you were a preferred shareholder - wouldn't you be a little pissed that your shares were suddenly just "reduced" with no compensation for them?

This isn't a bash. I love the idea of reducing supply with an increasing demand. But, I'm legitimately confused over what the hell this actually means to our real shares in the account.