12-27-2013, 06:10 AM
Relker, you don't seem to understand that a stock dividend or split is not a problem in any way. Simply increasing the amount of shares does not cause a problem or even really change things. (Whether is it technically "dilution" I am not sure, as I can't say I know the exact stock market definition of the term.) I believe "dilution" is basically when a current shareholder will own less of the company after the action takes place, which is not the case with a stock split or dividend. If there are 100 shares of a company and you own 20 then you own 20% of the company. If the company gives a 50% stock dividend then you would get 10 more shares, and there would be a total of 150 shares. Your 30 (20 + 10) shares would still be 20% of the company. Real dilution would be say if the company issued 10 more shares and gave them to executives. Now you only own 18.75% (30/160) of the company. Hope this eases your concerns.