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Re: alexindef post# 2836

Sunday, 02/08/2009 12:19:06 PM

Sunday, February 08, 2009 12:19:06 PM

Post# of 59026
Dilution Possibility:

When one company takes over another and clearly established itself as the new owner, the purchase is called an acquisition. From a legal point of view, the target company ceases to exist, the buyer "swallows" the business and the buyer's stock continues to be traded.

The problem here is the payment for the acquisition, the most common is to pay with shares, so, the old owners of the adquired company will sell this shares in the open market diluting your position.