Artificial Intelligence Technology Solutions Inc (AITX)

[JustJack]

What happens when a company increases number of shares?

re: by 300 million last month again.

Increases in the total capital stock may negatively impact existing shareholders since it usually results in share dilution. ... As the company's earnings are divided by the new, larger number of shares to determine the company's earnings per share (EPS), the company's diluted EPS figure will drop.

Stockholders should pay attention to this on a company's balance sheet. An increase in the total capital stock showing on a company's balance sheet is usually bad news for stockholders because it represents the issuance of additional stock shares, which dilute the value of investors' existing shares.