BVest wrote:kmp127 wrote:I thought as long as there were enough being issued for money, they could grab those.
As long as they're being issued for money, they can grab those. It's the ones issued for non-monetary purposes they can't grab. Assuming the stock provides preemptive rights, you will never be diluted by an issuance of stock for cash -- as long as you want to exercise and you have enough cash with which to buy stock.
In the question, 3000 new shares were issued for money. So you can grab your full 10% of those. 2000 new shares were issued for non-monetary consideration; you can't grab any of those (and that's what dilutes you).
perfection. u, sir, are brilliant.