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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked

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To: MARK C. who wrote (29755)4/20/1999 3:05:00 PM
From: kathyh  Read Replies (1) of 90042
 
an example... if tlabs "issued" some shares from their 300 million "authorized but not yet issued" stockpile, for an acquisition, where does the value in those shares come from...

before they are issued, authorized shares are not used to calculate market cap, which is calculated on outstanding shares only if i am following what you are saying...

so if they issue say 45 million shares (from your previous example, if i remember right), doesn't that dilute the outstanding shares by 45/195 = 23%... then, isn't tlab stock going to be worth $98 - 23% = $75 /share all the sudden at the current market cap?

or i am i totally confused about this??

i know this is a lot of questions for the middle of the day, so please don't interrupt what you are doing...

kathy :))
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