Nikola Corp (fka NKLAQ)

[Donotunderstand]

?
stealing

I bought a long time ago and more recently

My point is simple ------ and a first step before the market starts to price !!

Example company -- any company - is trading at $5 a share with 1000 shares outstanding

I own 100 shares. As there are 1000 shares - I own 10%

Example company by IPO/SPO issues another 100 shares at $5 (the PPS the day before)

Nothing - at first - happens to price - as market knows there are more shares but the company is richer by $500 (the company has 100 more shares outstanding but that came with $500 from those who bought in the IPO/SPO

I now own 9% of the company with my 100 shares - I have been diluted in ownership
If that 100 shares continues to trade at $5 - I have not lost any money
Shares may trade at lower than 5 or higher than 5 (many smaller companies do a second offering as they need the money but have clearer and better future options in the mind of the market so the PPS on the larger number of shares - the richer company cash wise - can go up)

That is different than a split