Replies to post #24281 on USA Recycling Industries, Inc. (USRI)

[pumper_stumper]

Yes, so now you admit, you view the two as alternatives. But, they are NOT.

Selling shares to dilute (which is the only reason A/S are increased) brings in funds to the company (or pays off a debt), while reducing the existing shareholders percentage ownership.

Whereas, reverse splitting the stock does NOT change the financial position of the company, nor the percentage ownership of each investor.

They are two totally different concepts, yet somehow you want to link them as alternatives. One is a form of financing, the other is simply changing the bookkeeping of how many slices and the size of those slices of the company, with the investors percentage of ownership being unchanged. Two TOTALLY different concepts, and not alternatives in any shape or form.