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BullionNation

02/12/08 10:55 AM

#50781 RE: darwindows #50776

It's NOT just pure dilution! Look at the VALUE that has been ADDED to the company with the exchange of those shares! Look at the REVENUES that have been ADDED to the company!! Those shares aren't being produced to pay the salaries of the CEO. Those shares were produced to ADD TO THE INTRINSIC VALUE OF THE COMPANY!! Completely different form of dilution!
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alien42

02/12/08 11:07 AM

#50792 RE: darwindows #50776

dilution - "A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities."

"Adding to the number of shares outstanding reduces the value of holdings of existing shareholders."

http://www.investopedia.com/terms/d/dilution.asp

DPDW issued shares to acquire companies that added to the revenues of the company and did not dilute the value.