Digital Brand Media and Marketing Group Inc (DBMM)

[otterman]

Shares are shares regardless of the type. Claiming they have no effect on the market is the same as them being worthless to the holder. Restricted shares, class A, B, C, whatever, convertable debentures, it doesnt matter. The broader market sees it as dilution until it isnt (such as the buyout earlier this year:) and regardless of what any individual shareholder thinks, it is. Its not as if one day when the restrictions come off the market for the issue takes a huge plunge in value. For the most part its already factored in. Possibly the closest to the same effect on the SP would be a comparison to warrants or futures. Price gets factored in the closer they come to expiry (or in this case the restrictions coming off), but its still dilution in the end. Dressing it up and giving it a pretty name doesnt work. Unfortunately the masses of the world are learning (at least I hope they are) the hard way.