Tuesday, June 20, 2017

¿Can we get some discussion on drys? I know it's a bad stock but I want to understand what makes it bad.

Stock splits don't affect company value besides keeping the price away from unusable levels like less than $. 01 or above $257,320.00

Stock dilution on the other hand shouldn't affect the value of the stocks you hold. The money raised is added to the value of the company so the shares you hold become a smaller portion of a more valuable company. Dilution makes the stock unappealing for small investors who fear getting squeezed out during an inconvenient time (like a price dip). Dilution also makes the stock unappealing to large investors because the percentage of the company an institution holds is important and having that percentage changed without consulting the institution is a huge turn off.

So dilution is only really bad when the ceo is embezzling money (which drys absolutely is)

How much can a company embezzle before shareholders can sue?



Submitted June 20, 2017 at 07:14AM by squiremarcus http://ift.tt/2sOzO2i

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