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To: Victor Lazlo who wrote (91675)	1/21/2000 12:12:00 PM
From: Greater Fool	Read Replies (1) \| Respond to of 164684

>>dilution only affects a small # of stocks Really? On this board I am constantly seeing commentary on the release of restrictions on insider shares. And isn't the thin float (shares available to trade vs. shares outstanding) a contributor to the boom? >>even smaller co's don't go to the bank anymore for cash; they either sell stock But that's dilution, right there. Companies sell stock when they think the conditions are favorable for them to do so. They think the conditions are favorable when the general market will pay more for the stock than it's worth to them. A lot of IPOs are being rushed to market because the prevailing sentiment is that the conditions are favorable. IPOs will continue to come to market as long as that holds true, and increases in the efficiency of bringing companies to IPO, such as Hambrecht's dutch auction scheme, will increase the number doing so. So long term I see dilution becoming more and more important, eventually returning valuations to a more "normal" level.