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Sndd stock
Posted on 4/6/20 at 11:55 am
Posted on 4/6/20 at 11:55 am
Soaring today. Finally broke into the .01 barrier. Started at.0001 in 2015
Posted on 4/6/20 at 11:57 am to beef42
Just had a 600000 order last week and a thermometer deal today worth and estimated 400000 to NYC
Posted on 4/6/20 at 12:01 pm to beef42
You know they only make money diluting the AS right?
Posted on 4/6/20 at 12:04 pm to eScott
New to the game. It's a local company I read about and really like the stuff I've read about the CEO. What exactly do you mean escott?
Posted on 4/6/20 at 1:03 pm to beef42
It means that the company's main source of income is getting the approval to sell more shares of stock. They have a certain quantity of authorized shares (AS) that they are allowed to sell to the public. When they need money, they put more of those authorized shares into the market for sale. When the shares sell, they (the company) makes money. However, the theoretical value of the company stays the same. Therefore the value of the outstanding shares goes down; investors lose money while the company (owners) makes money. It's a common scheme amongst penny stocks.
Basically, let's say the company has 1 billion shares outstanding at $0.005/share. The company is "worth" $5MM. If they get another 250,000,000 shares authorized and issue them, the owners could stand to make up to a million bucks from the sale of said shares to the public but the company is still technically valued at the same $5MM. However, now with more shares outstanding, the price will theoretically drop to .004 thus screwing over common shareholders.
Basically, let's say the company has 1 billion shares outstanding at $0.005/share. The company is "worth" $5MM. If they get another 250,000,000 shares authorized and issue them, the owners could stand to make up to a million bucks from the sale of said shares to the public but the company is still technically valued at the same $5MM. However, now with more shares outstanding, the price will theoretically drop to .004 thus screwing over common shareholders.
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