AVEW Holdings Inc. (AVEW)

[cottonmather]

Dilution is commonplace in otc land. It's done to raise cash for payroll or any operating expense, yacht, girlfriend, etc. Dilution decreases shareholders equity.

Let's say WXWY has 20 authorized shares with 10 shares outstanding going for $1 each. At that point in time, WXYZ decides to raise $4 cash for the blonde on the yacht and distributes 4 new shares into the market. The original 10 shares have decreased in value by 40% by intangible terms. Once the market understands new shares have been distributed, future participation will consider this and value the entire 14 shares differently and probably a lot less in tangible dollar value.

Reading financial reports will uncover most of this activity, although efforts are often made to disguise the activity or even amend a filing later to postpone the market knowing it. Gagging a transfer agent has become popular. Transfer agents handle the administration of physical stock, etc.

If you want to invest in a company, it is better to chose a national or general market stock than screw around with pinks and otc's. The later are full of crooks and volume shennanigans.

Good luck