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Re: MuskVoice post# 359

Tuesday, 02/16/2021 7:43:49 AM

Tuesday, February 16, 2021 7:43:49 AM

Post# of 375
It comes down to what they do with the additional money.

Do they dilute so they can keep the lights on, pay management fees (activities that do not add value to shareholders), this is dilution in the negative sense.

Do they dilute but add value in the process it should be considered as accretive. Examples can be: issueing shares to acquire an asset from another company or another company as a whole. In this case there is share dilution: you own less % of the pie. However, the pie got bigger as a whole. So your smaller share of the total pie can still be worth more then the larger share of the smaller pie.