CMY 0.00% 0.5¢ capital mining limited

Updated company summary, page-8

  1. 2 Posts.
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    Hi. Just sharing some info for those who may be confused:

    In simplest terms, when a company creates new shares and sells them, it's true that existing shareholders now own a smaller percentage of the company. However, as the company is now more valuable (since it made money by selling the new shares), the real dollar value of the previous shares is unchanged.

    That said, the decision to issue new shares can be interpreted by investors as a signal of the company's strategy and thereby alter the market price; this may well affect the real dollar value of the previous shares. But the simple act of creating new shares does not alter the value in and of itself.

    Bless
 
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Currently unlisted public company.

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