Replies to post #122227 on Spongetech Delivery Systems Inc (fka SPNGQ)

[z4lover]

risk

An increase in the A\s or available shares is simply increasing the number of shares for the company has a potential to sell.

they increased the AS from 2.0 billion to 2.5 billion... meaning the company could sell 500 million more shares...

Many get scared by this as they assume if they can sell these shares they will sell these shares..

However at least in recent history of the stock.. The company has not only increased the AS but they have also bought back stock or decreased the number of shares that are out standing.

Now many would ask why they would do this. Well it does scare some investors out. However it also makes it cheaper for investors who trust the company who has been saying they aren't selling shares to get in and buy shares cheap..

hope that helps.

[matwenty8]

Here's a site that explains A/S, O/S, and RME:

http://stocks.about.com/od/understandingstocks/a/Shareterm113004.htm