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.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Candle stick who wrote (586)	10/28/1997 7:17:00 PM
From: TheLineMan	Read Replies (1) \| Respond to of 164684

I don't think this can really be referrred to as dilution. Dilution infers that the company will issue more stock and that stock already held by an individual will now represent a smaller holding in the company. As far as I understand it these shares are already taken into account when calculating the % ownnership (or for tha matter the market cap of the company), but it will mean more shares will work their way onto the market. If the price of a share is dependant on company valuation than it should NOT result in the stock price falling. However, I think the laws of supply and demand will apply - how many more suckers will it take to sustain the stock at this price?