Thursday, November 06, 2008 10:08:27 AM
greedy malone, when the company increases A/S, it does it by R/Sing the share structure affecting your current share price.
Suppose a company increased A/S from 1 billion to say 10 billion, the PPS must increase 10x but the value of the company as well as funds in your brokerage account remains intact. Assets value of $1 million remains the same, give it or take from it whatever you want.
Suppose a company increased A/S from 1 billion to say 10 billion, the PPS must increase 10x but the value of the company as well as funds in your brokerage account remains intact. Assets value of $1 million remains the same, give it or take from it whatever you want.
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