Mike The Pike Productions Inc (MIKP)

[lbdave]

It's important for people to understand how shares of a company enter the public market. Comapnines don't dump shares directly into the open market. They will sell discounted shares to funders, who in turn sell the shares into the open market. To avoid problems from the SEC these funders are supposed to be purchasing these shares for investment purpose from the company. This is where some of the confusion comes into play.... what constitutes the length of time shares must be held in order to be considered "for investment purposes"? The point I am making is this: Just because the TA has the same O/S numbers today as they did yesterday, doesn't mean the shares being sold today aren't discounted shares sold to funders 3 months ago. If funding is being done properly, the O/S should remain the same until the next traunch of funding is required from the company. At that point the company will recieve capital from funders for discounted shares, and the TA will reflect the increase at that time, but those shares may not be sold into the market for months to come.

With this in mind it easy to see that the shares hitting the market are dilutive shares, but not necessairly shares which would have increased the OS totals within the past month or so.