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Hulk Hogan is God

08/22/13 6:48 AM

#61809 RE: Verticalmojo #61808

That is totally wrong, increasing number of shares (diluting) lowers their value.

Like currency, when more is added to a supply, the value of each unit declines proportionally.

One share might be worth a dollar, but when another is created they would each be worth .50. When four are created they are .25, eight is .0125, and so on and so forth.

Econ 101 brother, seriously. 101.

People trying to suggest dilution doesn't lower value are IMO blatantly misleading people.

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Hulk Hogan is God

08/22/13 6:50 AM

#61810 RE: Verticalmojo #61808

When companies use splits (IE 2 for 1), the value of the share is immediately cut in half.

Before the split you own one share at 100, after split you own two shares at 50.

That's how it works brother, proportional. Dilution crushes value.