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I am fairly new to this and have been watching this board for a while now. Through all of you you've helped me in making some good choices and I thank you for that. My problem is I don't understand some of the terminology all of you use. The biggest one is "diluting". I get the impression when a stock is being diluted it's not good. But what does that mean and how does that affect a stock? Thanks.
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Putting more and more shares out there which decrease the value of a stock. I have a question myself.
I call Ameritrade customer support and they suck, gave me an attitude and didn't answer my question. I sold MMIC the other night and those funds are still not non-marginable. On that same night I bought some mutual funds, which I don't think have anything to do with whether the funds from MMIC are considered non-marginable or not. But, they should be non-marginable right???
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stock goes public and issues 1 million shares. since most of these pinksheet and many bb stocks have 0 cash they either raise some cash by selling more shares or use shares as cash. ie..very often you read in 10q that ABC company issued xxxshares to joes consulting for services rendered. so basically more and more shares get sold/used as cash by the company therefore causing the stock price to fall and fall
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quote:Originally posted by ecko13: Putting more and more shares out there which decrease the value of a stock. I have a question myself.
I call Ameritrade customer support and they suck, gave me an attitude and didn't answer my question. I sold MMIC the other night and those funds are still not non-marginable. On that same night I bought some mutual funds, which I don't think have anything to do with whether the funds from MMIC are considered non-marginable or not. But, they should be non-marginable right???
Because Wall Street are a bunch of stodgy old snooty *******s, they discourage penny stock investments as a matter of religion.
Ok... that said, the reason your funds are not marginable is that the trade has not yet settled. It takes 5-8 business days for penny trades to settle.
posted
Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities.
Adding to the number of shares outstanding reduces the value of holdings of existing shareholders.
quote:Originally posted by ecko13: Putting more and more shares out there which decrease the value of a stock. I have a question myself.
I call Ameritrade customer support and they suck, gave me an attitude and didn't answer my question. I sold MMIC the other night and those funds are still not non-marginable. On that same night I bought some mutual funds, which I don't think have anything to do with whether the funds from MMIC are considered non-marginable or not. But, they should be non-marginable right???
Because Wall Street are a bunch of stodgy old snooty *******s, they discourage penny stock investments as a matter of religion.
Ok... that said, the reason your funds are not marginable is that the trade has not yet settled. It takes 5-8 business days for penny trades to settle.
LoL.. i beg to differ.... it's usually 3 business days to settle... not 5 to 8 ... but i dont even get 3 business days.. my funds are settled same day...
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