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pitadog

08/01/10 2:51 PM

#28153 RE: dmoinvest #28152

It is not free money, simply a transferance from one party to another. Someone still has to buy shares dilution or otherwise.

I don't follow that logic. The company borrows money (CD, Wrap Loan, etc) and gives shares to another party that gives the company money. The A/S was diluted. Most often, the receiver of the shares gets the shares at a discount to the market and when registered, are sold into the public. (The float)

There is virtually not cost to the company for the shares that are given in exchange for dollars.

Perhaps you know something I don't. gltu