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Subject:  can a company just create more stock? Date:  10/12/2009  5:11 PM
Author:  mwdaw100 Number:  37 of 87

Recently some companies that I own stock in have made public offerings of common stock, some in the form of a “bought deal”. Can a company just create and offer more stock? Doesn’t this just dilute the value of the stock and hurt all current shareholders? Are there other ramifications of this action that are not obvious? Under what circumstances is this an OK thing to do?
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