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> Companies can create new shares out of nothing anytime they want. Companies have a number of authorized shares and typically need shareholder approval to inc
by cowsandmilk 7y ago
> Companies can create new shares out of nothing anytime they want.
Companies have a number of authorized shares and typically need shareholder approval to increase it. Sure, they typically set the number of authorized shares high enough to run into the problem with any frequency, they can't "create new shares out of nothing anytime they want."
- harryh 7y agoConsider the "they" in my "anytime they want" to be the shareholders. My point was that if the shareholders want to use stock for things like employee compensation or an acquisition they don't have to buy this stock from the market. They just make new shares.