^ No. Incorrect. "Diluted" doesn't mean that at all, it means the % diluted your stake has become after someone outside is issued shares. Let me explain You hold 10 shares of a total of 100 shares in company X so you hold 10% of the stake in company X Company X then issues 50 more shares to outside interests There are now 150 shares on the registry of company X (and you weren't offered any of the new ones) You now still own 10 shares of company X which now has 150 shares so your stake is no longer 10% of company X Your percentage stake is now 10/150 or 6.66% of company X Your shareholding (and any potential in future profits or prospects) has now been "diluted" from 10% to 6.66%... Its is frankly staggering how many people don't fully understand the devastating effect this sort of ongoing dilution has on their prospects in small caps (who don't actually fund their operations from profits) Absolutely staggering... Go take a look at quality companies vs those that behave like this one.. Quality companies grow earnings and if you look at their past 10 years historical "shares on issue", the number of shares hardly change (over that preceding 10 years) In this example in 2014 they have 100 shares. In 2024 they still have 100 shares, but their earnings have grown! So they are worth more to the shareholders! So the SP goes up!!!! On the other hand crap companies have a total number of shares on issue, that balloon over this time.. CR like this, is akin to debasement of currency by sovereign central banks "issuing more" currency via the private banking sector "issuing loans" What about the two is different? Hint.. Absolutely nothing Anyway I have tried NA/IMO
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