Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Swift Energy (SFY) -- Ignore unavailable to you. Want to Upgrade?

To: Robert T. Quasius who wrote (851)	7/31/1999 11:58:00 AM
From: Mark	Read Replies (1) \| Respond to of 1602

Robert - Yes the maths bothered me a little, but I think I am correct. If you owned 100% of a company with 1m shares and decided it was sensible for the company to issue a further 1m shares then your dilution would be 50%. In this case your new ownership is 1/(1+1) or 50%, and your dilution is the difference between what you used to own (100%) and what you now own (50%). By your argument, your dilution would be 100%, which presumably means that you now own nothing! I am willing to be persuaded otherwise, but can't see how this is wrong. Mark