Replies to post #1847 on Bed Bath & Beyond Inc (fka BBBYQ)

[buyittradeit]

Well, no, dilutive for shareholders not funders. There is a difference.

Anti-dilution provisions are clauses built into convertible preferred stocks to help shield investors from their investment potentially losing value. Dilution can occur when the percentage of an owner's stake in a company decreases because of an increase in the total number of shares outstanding.

https://www.investopedia.com/terms/a/anti-dilutionprovision.asp#:~:text=Key%20Takeaways-,Anti%2Ddilution%20provisions%20are%20clauses%20built%20into%20convertible%20preferred%20stocks,total%20number%20of%20shares%20outstanding.

Sorta like the 501 guys. A company can go belly up and they will still get paid. You can find funders like that usually in the otc or where ever they left a grey sheet. From time to time they appear in larger companies with a crew of bankruptcy lawyers. These lawyers usually tell the company whom they owe first.