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ItMakesCents

01/25/22 6:35 AM

#54016 RE: ItMakesCents #54010

As I often do I lurked on other forums. I frequently see questions asked with no responses so I post them due to having similar questions. I found the answer to a question I asked on a different forum so evidently at least one other individual is wondering the same thing.

The answer I saw posted to my previous post forthose that don't have the requisite knowledge or experience -

"The intrinsic value of your shares, as a percentage of ownership of the company, has been diluted. Price action as a result of the raise can vary, like funding CAPEX for growth with a headline partner(not bad!), or simply to fund working capital (very bad!). But on average the dilution effect alone will weigh on price. Opposite is true for share buybacks, less shares available to the market, so the value of those available increases."