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Re: chuckmeback post# 2055

Tuesday, 03/01/2011 9:07:42 AM

Tuesday, March 01, 2011 9:07:42 AM

Post# of 6266
That is when a company issues shares to raise money. By doing this, the outstanding increases. This is generally not a good thing. The larger the outstanding the more difficult it is for the price to increase - dilution devalues the share price. Penny stocks are known for it. Some are repeat offenders until the outstanding becomes so large that they have to reverse split the shares.

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