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Non-Tech : The ENRON Scandal -- Ignore unavailable to you. Want to Upgrade?

To: JBTFD who wrote (1817)	1/30/2002 3:55:22 PM
From: The Duke of URL©	Read Replies (1) \| Respond to of 5185

I am not exactly sure I understand your question, Mark, but you have to issue most stock for the same amount per share as a general rule. But if you just paid $5 for one share of 1000 outstanding, in theory you own 1/1000ths of the company. But if the during or the day after, the company prints and gives away for free an other 1000 shares you have been diluted to 1/2000th of the company. The future duty to do this creates an "option" an must be disclosed as "diluted shares" and things like earnings MUST be disclosed on a diluted basis. If it is not it is a substantial misstatement of a material fact, which is one of the elements of securities fraud.