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dorama22

03/24/14 11:35 AM

#39070 RE: CalderQuacks #39062

What DOES it mean when you incrase to 9 billion A/S ?

Pretend you run a lemonade stand. Your parents invested $100 to buy you your ingredients, supplies and stand. So lets say they get 50% equity in YOUR "company" and you get the other 50%. Unfortunately your not making enough to pay for rent. So you need more money. What do you do? INCREASE SHARES!

It tells alot about your company if you are INCREASING/DILUTING shares,
1. Your lemonade stand is losing money because of no business.
2. You as the CEO is making bad decisions and have no idea how to run a company.

So, how do you keep your Lemonade stand from shutting down?

You try and get money from your Uncle and Cousins to buy supplies and ingredients for your business to keep the show running.

A. Your parents now get 50% equity
B. your uncles and cousins probably now get 25%
C. YOU now get 25%

BUT WAIT THERE'S MORE!
You can still burn through their cash and drive your lemonade stock price down. Once you have exhausted all of your resources, you will keep diluting shares again and again.. until the stock price of your lemonade stand hits .0001

this is going to be the future
http://stockcharts.com/h-sc/ui?s=KGRI&p=D&yr=3&mn=0&dy=0&id=p36141039808