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Re: dilution*

By: nxtflatpanel in ALEA | Recommend this post (0)
Tue, 05 Mar 13 1:03 AM | 91 view(s)
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Msg. 12751 of 54959
(This msg. is a reply to 12749 by Cactus Flower)

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A reverse split does not increase the number of shares available to print.

The number of authorized shares must shrink at the same ratio of the reverse split. If they do not, as in the first reverse split, a shareholder vote must occur because that changes the capital structure of the company.

In the first reverse split, naive shareholders thought they were voting on the split itself. They weren't since that doesn't require a shareholder vote. They were actually voting on changing the capital structure by leaving the number of authorized shares intact.




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"I so sure of not having a reverse split that I will go on record and say that I will sell all my stock if that happens." snackscum, January 11, 2013


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The above is a reply to the following message:
Re: dilution*
By: Cactus Flower
in ALEA
Mon, 04 Mar 13 10:00 PM
Msg. 12749 of 54959

highly probable.

and it also increases the number of shares available to print.

wave has an interesting idea of the security market's trajectory but it continues to be a really poor investment with a very long term time horizon and a management that does not seem to know how to build a high price, high margin product which the market wants in volume. to get from high volume embedded low priced software to high value high volume enterprise sales looks to be beyond them for the moment.

just my inexpert opinion.


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