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Re: Garyst post# 205949

Tuesday, 03/12/2013 10:22:57 PM

Tuesday, March 12, 2013 10:22:57 PM

Post# of 289423
Let me clear up the dilution questions as many here just don't seem to understand it.

Dilution stems from share issuance, not share selling. You can issue 1 Billion shares and sell none of them for a year or two or three and it's still dilution. If the shares outstanding rise, it means shares where issued but not that they were sold. So shares that were issued over the past year can still be being sold daily right now and can continue to be for many many months.

The effects of dilution are twofold:

1. Every share issued makes your proportional share of the whole BBDA pie that much smaller

2. When issued shares hit the market, it can drive the price down.

People shouldn't confuse dilution for share selling. It's not the same. Large block trades aren't dilution, they're sells from it.