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Re: help me post# 5703

Sunday, 04/05/2020 9:21:52 PM

Sunday, April 05, 2020 9:21:52 PM

Post# of 22034
Nope! Not only broke companies dilute. In the OTC most likely they dilute because of the need of cash. Most companies dilute to finance upcoming projects, expansions, investments etc.
- Diluting the OS and the company doesn't worry about it much. If the company decides it can pay dividends. Each shareholders will hold the right to the company. The drawback is that outsiders with strong financials can engage in a hostile takeover.
- Issuing company bonds and the company have to have a security reserve standing by and have to pay interest and the full amount back at maturity date.
- Taking on a loan and the company have to pay the principal and the interest for the life of the loan.
- Generating profits and reinvesting in to the business usually takes a lot of time.
You crank the numbers up on all scenarios and you go with the option what is the most beneficial for the business in order to advance.
Then you crank up the numbers how much advancement you will achieve and make the decision to go for it or not.
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