RE: Inan14 Aug 2020 11:46
No I don't ... its just you don't understand simple maths ........ ONW's post
Company A shares in issue 100 Net assets £200
NAV per share - £200/100= £2 pshare
Company raises money by issuing 100 new shares raises £200
Company net assets now £400
Number of shares in issue Now 200
So NAV per share = £400/200 = £2 pshare
Any Shareholder who didn't get any of the new shares still has his ORIGINAL holding
So
Shareho;lder has originally 2 shares in the company thus his holding is worth (2/100) x 200 =£4
Now he has 2 shares in COMPANY so he is now worth 2/200 x 400 = £4
But if the company increases its NAV to £700
Originally he would have had £700x 2/100 = £14
But bc of share issue he now has 700x 2/200 = £7
His holding is diluted when assets grow....
Now once and for all, GEDDIT?????
atb