I agree with this poster from the Yahoo MB:
"Re: ACTC News 21-Feb-08 02:03 pm zombietom3
CD's and heavily discounted private placements, which generally include long-term warrants with cheap strike prices are usually the only significant methods that development-stage companies have to raise the money they need to do the R&D it takes to discover something important and useful, and to develop this intellectual property to a stage where it can be sold or partnered for product development. Of course the common shareholders also have a stake in the company and all hope to profit down the road, but they have to bear the pain of continued dilution as these financial instruments are converted to shares and sold. Frequently the share price is depressed as soon as a CD is sold, because the buyers will protect their investment by shorting the company's common. In effect, these large investors have little invested and little risk, since they get their investment back quickly from their short sales. Who really funds the company? The common shareholder, because the large investor takes his money back at the expense of the share price.
Still, common shareholders continue to buy and hold and many will indeed prosper in the end. Many will lose if their patience or time-frame for capital liquidation runs out before the tide rises, or if the tide never rises.
That's the way I see it, as just a common shareholder. "
