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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: mishedlo who wrote (98516)8/23/2002 12:18:37 AM
From: Timothy Liu  Read Replies (1) of 99280
 
What the hell are YOU talking about. Company stock is an asset? "What happens when all the company stock is gone?"

Company sell stocks just like government print money. Get it? It is a dilution (or in the case of government, inflation.)

When company stock goes from 1 million shares to 2 million shares. The company lose nothing. The shareholder value is halved. Get it? The company do not own the stock. Shareholders do.

Giving you a few million stocks will not change company fundamentals but will make each share worth less. So without a good reason, the shareholders will not approve it. Sorry.

Tim
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