Please take my original example in response to a post that suggested a 50% decrease in pps because of the " DILUTION"... do you really think that you could acquire 50% of SGLB for ZERO DOLLARS by approaching management for those shares simply because the authorized share count had doubled?
Stay within the context of the original,flow of ideas.
IF the current pps were to be $10 and I wanted to take a 50% interest in the company, and the company had 50% of the authorized shares unissued, could I simply ask for them without payment? That would be the only way that there would be a 50% dilution to prior shareholders.
Certainly there is the possibility of dilution when a company issues authorized but previously unissued shares in a private placement...but the dilution is not 100% of the value of those shares as priced to the acquiring individuals. To suggest that today's price decline is due to the dilutive impact of authorizing more shares under the proposal is absurd - which is what I originally was responding to. Yes, I did not go into the weeds to the extent that would include the possibility that a major investor could demand some discount on the shares received from the company that a had not been issued, but seriously... FOR FREE?? Thus a complete dilution....
Any potential dilution would be mitigated by the price paid for the authorized but previously unissued shares. Sometimes the explanation requires details.....
DRIVEL
FEAR
and less than realistic consideration of the world as it exists
besides, given today's volume, how,do,you draw conclusions??
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