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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?


To: kathyh who wrote (29769)4/20/1999 3:13:00 PM
From: MARK C.  Read Replies (1) | Respond to of 90042
 
Kathy, Using as yet unissued shares would not dilute the way you are thinking because they would be getting something in return(for our example FORE) so they would be getting value for those shares. However when the accounting is said and done there may be a charge for the premium which they actually paid to acquire FORE. But if they figure FORE will be accretive in the near term then the dilution becomes a mute point in the near term. Just my basic understanding of things and others I am sure have a better grasp of this than I do. :-) MarkC.