dhanson865
Well-Known Member
If they use all of them for a split it's not dilutive. If they use some of them for employee compensation that is dilutive. If they use some to issue new shares to bring in more cash that is dilutive.Question for my enlightenment:
In the event that a large number of additional shares are approved (let's say Dodger's trillion), is the dilutive impact on existing shares accounted or adjusted for ?
Is there any adjustment to their intrinsic "weight", or do they just become of much smaller valuation and we move along ?
The reason behind my query is that if the number of new shares was significant, as in this example, a majority shareholder could conceivably lose that status even with the multiplicative effect of the split.
So when we vote we are extending the rope (adding more shares), but we don't know until they use it if we are helped, harmed, or unaffected.