$RCAT “Less-experienced investors often don’t see the potentially detrimental effect that newly issued shares can cause. They may be proud of the 20 percent gain their stock has returned so far, not realizing that this occurred during a time when the company significantly diluted its holdings. Without that dilution, the investors’ returns may have been significantly higher, but this lost opportunity will never show up in any quantifiable way. If you’re a shareholder in a company, you don’t want it to dilute your investment by issuing more shares. If you are not yet a shareholder in a company that you’re considering investing in, you don’t need to worry about dilution from the company, because it will simply make the shares you’re thinking about investing in both less expensive and more available.”
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