Metro One Development, Inc (MTRO)

[charhorse]

Equity Financing
http://www.investopedia.com/terms/e/equityfinancing.asp
Share Capital
http://www.investopedia.com/terms/s/sharecapital.asp

What an equity company does with the stock they receive is really up to them if they are unrestricted freetrading shares.
There are multiple ways for them to make money off of the same shares.
Short the stock and dump the shares that they hold on the market.
Cover at the lower price that they have created. Resell when the price recovers.
They can really manipulate the crap out of an issue, the important thing is when you jump on the bandwagon or how long you can stand the manipulation without capitulating.
They are making money off of you the investor, after receipt of the initial shares. It isn't really a reflection on the earnings capability of the company. As long as the company dosen't relinquish too much equity and lose control of the operation or direction. Where the shares come from is also important.
I'm just attempting to learn here so anyone feel free to correct my ideas or add