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Tuesday, 04/05/2022 8:35:12 AM

Tuesday, April 05, 2022 8:35:12 AM

Post# of 82988
WQLF Says; Due Diligence YQU now Understand YQU Understand Have Mercy Have Partners Have Cantine Merger Have Faith WQLF Ahooooooo

“Either way, when options are exercised the result is that more shares are in circulation, and that reduces, or dilutes, the value of shares previously in investors’ hands.“


https://knowledge.wharton.upenn.edu/article/how-employee-stock-options-can-influence-the-value-of-ordinary-shares/

Motor Mouth Asks;

can someone explain why they did this?

"On March 30, 2022, the Company amended the Plan to decrease the number of shares that may be issued under the Plan by 8,000,000 shares"

Dr. Joong J Fang Said; Simple Logic and Common Sense.

“If a company had one million shares outstanding and employees exercised options to purchase 200,000 shares, there would then be 1.2 million shares outstanding. This would affect earnings per share, which is figured by dividing the company’s total earnings for the period by the number of shares outstanding. If the company earned $1 million, earnings per share would be $1 before the options were exercised, and only 83.3 cents after the exercise. Since a stock’s price is heavily influenced by earnings per share, lower per-share earnings would likely cause the share price to fall..”