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Further, if the stock is stagnant or declining, this would be taking money from investors via stock dilution. If Jim puts $10 into the company for 10 of 100 tot
by zamalek 3y ago
Further, if the stock is stagnant or declining, this would be taking money from investors via stock dilution. If Jim puts $10 into the company for 10 of 100 total shares, and you increase the shares to 200 by handing out money to executives - Jim now owns $5 (10 of 200 shares) with his other $5 being used to "print" the shares.
This is not currently the case with Tesla, but the stock has a reputation for being volatile.
- dghlsakjg 3y agoIt’s taking money from investors no matter what the price does. If the price is going up the existing investors now own a smaller percentage of a more valuable company. It’s just more obvious if you get diluted while the company doesn’t change value.