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Re: FATDOG post# 2220

Tuesday, 03/20/2007 11:27:15 AM

Tuesday, March 20, 2007 11:27:15 AM

Post# of 18807
Fatdog, when the stock is issued a certain portion of the stock remains in the treasury as company stock and is not sold on the open market, but can be without additional permission. This stock has basically a no cost to the company, so they can sell it at any price and raise capital. As for these shares being part of the calculation for dilution when the company sells them I might differ on that since they really should be factored in already, but having them dropped on the market in a receding market definitely creates a dilution like affect.

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