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To: FARRIS who wrote (2398)1/9/1998 6:11:00 PM
From: Ditchdigger  Read Replies (2) | Respond to of 4276
 
Simple example, you start with 50m, reverses(1:20)=2.5 million shares
now if just 2.5 million are issued(new) you have been diluted 100%(lost 50% value)
*5m=200%(lost 100%value) and so on..DD
PS: I hope this makes sense,it is a bit confusing-hope I didn't blow the math,but you get the point..