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It's a joke that stocks can be diluted afterwards by insider offerings. Thats almost a license to print money. Surely theres a law for this scam?
by louislouis 15y ago
It's a joke that stocks can be diluted afterwards by insider offerings. Thats almost a license to print money. Surely theres a law for this scam?
- cellis 15y agoYes, it's called The Law of Supply and Demand. Once they increase the supply of the stocks too much, the demand will go down and they'll have to go back to having 3 summer homes instead of 4, and 2 private jets instead of 3.
- louislouis 15y agoYes but shouldn't the demand for stock be translated into the stock price going up? And not a backdoor to dilute the cake?
- lurker19 15y agoThing is, share dilution is not much different from giving an employee or vendor a huge pile of money in exchange for labor that turns out not to generate much revenue. It is bad for business (and will be reflected in a share value drop), but how can you prove it is fraud?
- louislouis 15y agoHmmm... It's rather convincing when you put it that way.