RE: Ready access to capital is huge12 Dec 2023 15:14
You normally argue that just because there are 2 billion shares it will be more difficult to gain the same as if there were 2 million. This is simply false becuase for the same money you can own 1000 times more shares and any price movement will provide the same absolute monetary gain. Yes, if you buy and are diluted and never buy again you will lose out, true ... but the issuance and trading of shares to fund early satge companies is what the stock market to a great extent exists for. Simple rule, dont buy into an early stage company if you don't accept dilution as a probable outcome. But you can always buy more at the new lower price, if indeed it is offered at a discount which is usually the case. However I challenge you to find me a share raise where the issue price was a tenth of the market price immediately before the issue. 20 - 30% discount maybe .. never 90% - it would never get away for lack of confidence.