" In any event, his equity is being diluted because the company is selling additional stock at less than the net asset value (underwriting commissions have been ignored to simplify the mathematics of the illustration). If the "rights" are sold, the dilution is greater. If the stock need not be offered to the present shareholders, dilution will also follow. For many years, closed-end investment companies did not try to raise additional funds through the sale of stock. More recently, a number of funds whose stocks have generally sold at substantially less than net asset value have raised additional capital. A few commentators have protested, but apparently without exercising any influence.


For Achieving Trading Consistency, Confidence, and Relaxed Profitability of Online Currency Trading, visit Forex Currency Trading

Tags: online trading, stock market, stock trading