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Technology Stocks : CMGI What is the latest news on this stock?
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To: Mark Peterson CPA who wrote (7775)4/29/1999 4:02:00 PM
From: DJ Oglesby  Read Replies (1) of 19700
 
Mark:

So, is a split the only acceptable reason to issue more shares? I understand the concept of splitting, and if that's the only reason a company issues more shares, then that's alright with me. But don't they sometimes issue more shares just to raise more capital, and doesn't this dilute the value of the shares already outstanding? I don't specifically mean "they" as CMGI. I mean in general. I always look at the number of shares outstanding when I look at a company's financial reports, and it seems there is frequently an increase in shares outstanding when there has been no split or acquisition. I think this can be a sneaky way for a company to increase its capital without passing anything through to the shareholders, because people don't seem to pay much attention to the number of shares outstanding.

And as an addendum to my earlier post, I had a slip of the brain when I referenced DCLK, because of course, they had a 2:1 split. Not a good example. See Rene Madsen's post, "why would anyone vote to dilute their shares..."

Thanks very much for your response.

Regards,
DJO
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