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How can one find out whether the company has performed dilution or not? Where can one see how many times in its history the company has performed dilution in its history? Is it possible to know beforehand that the company is going to perform dilution?

P.S. That is ONLY related to the shares traded at the American exchange OTC Market (OTCQX, OTCQB, OTCBB, OTC Pink).

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Publicly traded companies perform dilution via an FPO (Follow-up Public Offer). It is a process similar to IPO, with announcements, prospectus, etc. You will know ahead of time when that happen.

Stocks traded OTC are not required to file a lot of regulatory documents that publicly traded stocks are required to file, and may not disclose dilutions or additional issues. By buying OTC you agree to these terms. You will probably get a notice and a chance to vote on that in your proxy statement, but that happens when you already own the stock.

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  • Can't you also get dilution when a company issues stock options to employees?
    – user12515
    Jan 20, 2015 at 19:47
  • Additionally, a company is required to file an 8-K when they sell more stock. You can find that on EDGAR.
    – jmabs
    Jan 20, 2015 at 19:51
  • @Michael yes, that should appear in the financial reports.
    – littleadv
    Jan 21, 2015 at 4:46
  • It is not possible to know beforehand when a company will dilute. They may, for example, initiate a private offering with warrants. You will not know ahead of time.
    – Agamemnus
    Oct 6, 2015 at 3:24
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Your best bet is to just look at comparative balance sheets or contact the company itself.

Otherwise, you will need access to a service like PrivCo to get data.

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You will have to check SEC forms to know this in full. A publicly-traded company will have an amount of publicly tradable shares which can be easily found on their financial reports. But. that is not the only type of equity-like financial instrument that such a company can issue.

A previous reply mentions "follow-on" public offering. However, a company may initiate a private equity offering without disclosing ahead of time, sometimes with warrants, or long-lasting options to purchase (new) stock.

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