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This is sort of silly - they're trading the new shares for lots of money, which now belongs to everyone who owns the shares. So they own a smaller share of the
by ericd 13y ago
This is sort of silly - they're trading the new shares for lots of money, which now belongs to everyone who owns the shares. So they own a smaller share of the total company, but that company now includes itself plus $500M in new money that wasn't there before. If the company is properly priced at the moment, it's a net neutral transaction. If it's overpriced, it's great for the current shareholders.
- damoncali 13y agoThis has thead has gotten a bit out of context. I don't have anything more to add. I was trying to explain why the original post felt the need to point out that dilution is bad for shareholders, and apparently did a poor job.