What Will Happen To My Shares When The Company Issues New Common Shares?
Submitted by admin on October 6, 2009 – 8:40 amNo Replies
A web user asks, I have shares in Ford, and I’ve heard that they are going to issue new common shares 20% in excess of the outstanding amount. When this happens, how is actually going to affect my shares?
I know people are talking about dilution, but I don’t really get what they mean by that. Does that mean the shares are going to reverse-split or only the price is going to go down somewhat?
Can you help them out? Post your advice!
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