Hi guys what does dilude mean?

[mjstyle]

I see Doc writing the company is diluding the stock which makes the stock price drop... I don't understand what does that term mean? Could someone give me an explanation please. Thank you

[hangin1]

I see Doc writing the company is diluding the stock which makes the stock price drop... I don't understand what does that term mean? Could someone give me an explanation please. Thank you

hey good question as i was wondring the same thing so i did a simple google of the subject and have found this link to be somewhat helpful. I hope this will at least provide some info on what you are looking for.

http://en.wikipedia.org/wiki/Stock_dilution

[mjstyle]

thank you hang.

[Tommy86]

I see Doc writing the company is diluding the stock which makes the stock price drop... I don't understand what does that term mean? Could someone give me an explanation please. Thank you

diluting means bringin new shares into the market causing more supply than demand. you get more sellingpressure cause new shares are sold into the market and it makes the price drop.

see Dr post about conversions too:

"Quote from: Eric on Yesterday at 06:23:43 PM
--Hey Doc, or anyone who might know; when I see people talking about conversions going through is this someone selling-in new common shares and creating dilution?

Eric--


When you see people talking about conversions, that means Convertible Debentures or CD, and this is a debenture that can be converted into some any security, usually CD's are converted into common stocks, which is dilution, but, is not the same as issue common shares direct to the market through a S8 fill.   "