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shotsky

06/06/17 1:07 PM

#53841 RE: Doughboy24k #53826

Equity investors increase the OS. Keep an eye on that by asking the TA. The other ways the OS grows is by employee options and by dilution from loans. Loan dilutions tend to be huge numbers because they have a huge discount from market (usually), equity investors not so much, as they are buying at market minus a discount. Much better to sell stock just below market to an equity investor than to let loans expire and then give away stock.
The problem is that the equity investor has to be convinced it is a good deal for him/her/it because the stock must increase in value to make a profit.