News Focus
News Focus
icon url

GreenBriar

02/03/10 4:59 PM

#95322 RE: MrStyle #95320

That may be good for the company, but not the investor. As an investor you want as few a number of Outstanding Shares as possible - which, in theory, keeps your monetary stake in your investment as high as it can possibly be, at any time that everything else is at comparable level of stability.

If a company has, for example, 100,000 Outstanding Shares and you buy one, you (basically) own 1/100,000th of that company - then next week all remains the same at the company (nothing happens that increases the VALUE of that company) except the company dilutes and suddenly there are 1,000,000 Outstanding Shares you own 1/1,000,000th of that company - or 1/10th of the stake you owned last week. (which is even worse when companies get into diluting BILLIONS of Outstanding Shares)

Sort of like a pie... If the size and value of a pie (as a whole) remains the same and it is cut into smaller pieces, each piece is worth less than if that pie had been cut into larger pieces.

SO... GAG THE TA, SO NO ONE REALLY KNOWS!
icon url

meeko99

02/03/10 5:02 PM

#95324 RE: MrStyle #95320

more like the opposite, most people won't invest in a company that hides that information. Hopefully you get this post seems like eveyone of my posts have been deleted today because they aren't 100% pro bbda, I am a shareholder and always give credit when credit is due to brian, but in the same light i'll raise questions and critisize when credit isn't due.
icon url

Jdub33328

02/03/10 5:46 PM

#95331 RE: MrStyle #95320

Just for the record...I always enjoy your post :)

Is the T/A still gagged? what is today?