Winning Brands Corporation (WNBD)

[lbdave]

The dilution that people speak of here on the board is a result of 504 funding. The way it happens is an accredited investor (defined by sec regulations) will give the comapany money, in exchanged for discounted shares. This investor is the one who sells the shares in the open market. Capital funding is done by every issue in the market at some point in time, thus the reason for going public with the company. This provides operating capital for the company until the time their revenues are sufficent to cover operating cost.