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Re: Weedman1 post# 16370

Friday, 02/23/2018 10:56:15 AM

Friday, February 23, 2018 10:56:15 AM

Post# of 21832
Dilution is most ought out way for new startups to get money. This is also called Toxic financing. They issue large num of shared to investors at lower prices since they need cash now.

For e.g they gave $12Mil worth of shares to InvestorA at .0001. This investor can then, after agreedd time period, sell these shares. The catch is the investor will sell at .01 or a better price. Thereby flooding the market with shares. The price is demand+supply+hype+ potenttial earnings.

Hope this helps.