The Software Freedom Conservancy on Tesla's GPL compliance

Posted May 29, 2018 22:17 UTC (Tue) by rahvin (guest, #16953)
In reply to: The Software Freedom Conservancy on Tesla's GPL compliance by smurf
Parent article: The Software Freedom Conservancy on Tesla's GPL compliance

Dilution should always be a concern. If there are a million shares and Tesla prints another million shares, then everyone that already owned a share saw a 50% decline in it's value as a percentage of the company. Dilution is a big deal to investors and always should be.

The Software Freedom Conservancy on Tesla's GPL compliance

Posted May 29, 2018 22:59 UTC (Tue) by mgb (guest, #3226) [Link]

Dilution should always be a concern. If there are a million shares and Tesla prints another million shares, then everyone that already owned a share saw a 50% decline in it's value as a percentage of the company.

Investors also gain a 50% share in the proceeds of the stock sale so dilution is a wash for real shareholders. However dilution and stock buybacks can afford spectacular gains and losses to derivatives holders, particularly those with prior knowledge.