Replies to post #226939 on NanoTech Entertainment Inc (NTEK)

[stringofpearls]

"diluting the float"……..means EXACTLY that………..

the statement is TRUE……..so is the statement that the O'S has NOIT increased…..

I NEVER SAID the O/S increased…….this now the 2nd time…….lol

there is nothing to "debunk" the FLOAT increase is a cold HARD FACT

the part that STUMPS is this part…..

the FLOAT is increasing ….right????? when you see "increase" that is the definition of dilution of that measurement

SO

the FLOAT is being diluted by RESTRICTEDS being released from their restricted status, which are ONLY held by insiders or "insider" like contractors who SHOULD KNOW that NTEK has much GREATER things coming……….RIGHT???

SO..

WHY ARE THEY DILUTING ( increasing ) the FLOAT with these lowly share prices???????

THATS MY QUESTION…………WHY would a "smart" insider who was given restricted shares sell them down here in the 5's????????????

if I knew next month, OR NEXT YEAR that my shares would be worth 3 or 5 times more, I WOULDNT BE SELLING THEM……….if I needed the cash so desperately, I would get a loan……

……the FLOAT increase,,,, amounts to a "NO CONFIDENCE" vote,,,,, from those insiders

[Zorax]

Some ntek stock definitions....
http://www.investopedia.com/articles/basics/03/030703.asp
Note red highlight

The Basics Of Outstanding Shares And The Float
By Investopedia Staff
Financial lingo is very important for anybody interested or invested in products like stocks, bonds or mutual funds. Many of the financial ratios used in fundamental analysis include things like outstanding shares and the float. Let's go through these terms so that next time you come across them, you will know their significance.

Restricted and Float
When you look a little closer at the quotes for a company, you may see some obscure terms that you've never encountered. For instance, restricted shares refer to a company's issued stock that cannot be bought or sold without special permission by the SEC. Often, this type of stock is given to insiders as part of their salaries or as additional benefits. Another term you may encounter is "float." This refers to a company's shares that are freely bought and sold without restrictions by the public. Denoting the greatest proportion of stocks trading on the exchanges, the float consists of regular shares that many of us will hear or read about in the news.

Authorized Shares
Authorized shares refer to the largest number of shares that a single corporation can issue. The number of authorized shares per company is assessed at the company's creation and can only be increased or decreased through shareholders' vote. If at the time of incorporation the documents state that 100 shares are authorized, then only 100 shares can be issued.

But just because a company can issue a certain number of shares doesn't mean it will issue all of them to the public. Typically companies will, for many reasons, keep a portion of the shares in their own treasury. For example, company XYZ may decide to maintain a controlling interest within the treasury just to ward off any hostile takeover bids. On the other hand, the company may have shares handy in case it wants to sell them for excess cash (rather than borrowing). This tendency of a company to reserve some of its authorized shares leads us to the next important and related term: outstanding shares.

Outstanding Shares
Not to be confused with authorized shares, outstanding shares refer to the number of stocks that a company actually has issued. This number represents all the shares that can be bought and sold by the public, as well as all the restricted shares that require special permission before being transacted. As we already explained, shares that can be freely bought and sold by public investors are called the float. This value changes depending on whether the company wishes to repurchase shares from the market or sell out more of its authorized shares from within its treasury.

Let's look back at our company XYZ. From the previous example, we know that this company has 1,000 authorized shares. If it offered 300 shares in an IPO, gave 150 to the executives and retained 550 in the treasury, then the number of shares outstanding would be 450 shares (300 float shares + 150 restricted shares). If after a couple years XYZ was doing extremely well and wanted to buy back 100 shares from the market, the number of outstanding shares would fall to 350, the number of treasury shares would increase to 650 and the float would fall to 200 shares since the buyback was done through the market (300 – 100).

Hold on a minute, though - this is not the only way the number of outstanding shares can fluctuate. In addition to the stocks they issue to investors and executives, many companies offer stock options and warrants. These are instruments that give the holder a right to purchase more stock from the company's treasury. Every time one of these instruments is activated, the float and shares outstanding increase while the number of treasury stocks decrease. For example, suppose XYZ issues 100 warrants. If all these warrants are activated, then XYZ will have to sell 100 shares from its treasury to the warrant holders. Thus, by following the most recent example, where the number of outstanding shares is 350 and treasury shares total 650, exercising all the warrants would change the numbers to 450 and 550, respectively, and the float would increase to 300. This effect is known as dilution.

More:

http://www.investopedia.com/ask/answers/04/091004.asp

What exactly is a company's float?

By Investopedia Staff
The term "float" refers to the regular shares that a company has issued to the public that are available for investors to trade. This figure is derived by taking a company's outstanding shares and subtracting from it any restricted stock. (Restricted stock is stock that is under some sort of sales restriction: for example, stock that is held by insiders and cannot be traded because they are in a lock-up period following an initial public offering.)

A company's float is an important number for investors because it indicates how many shares are actually available to be bought and sold by the general investing public. The company is not responsible for how shares within the float are traded by the public - this is a function of the secondary market. Therefore, shares that are purchased, sold or even shorted by investors do not affect the float because these actions do not represent a change in the number of shares available for trade: they simply represent a redistribution of shares. Similarly, the creation and trading of options on a stock do not affect the float.

Still don't quite understand what a float is? Here's an example:

Say the TSJ Sports Conglomerate has 10 million shares in total, but 3 million shares are held by insiders who acquired these shares through some type of share distribution plan. Because the employees of TSJ are not allowed to trade these stocks for a certain period of time, they are considered to be restricted; therefore, the company's float would be 7 million (10 million - 3 million = 7 million). In other words, only 7 million shares are available for trade.

It should also be noted that there is an inverse correlation between the size of a company's float and the volatility of the stock's price. This makes sense when you think about it: the greater the number of shares available for trade, the less volatility the stock will show because the harder it will be for a smaller number of shares to move the price