I wonder what is more to Market Capitalization formula ?
I am mostly an ETF investor, but follow some stocks with few # of shares and when I look at SPCE about 4-5 years ago its market capitalization was $1B and share price was little more than $10 per share.
Now share price for same stock is about $6.75, but market capitalization is $1.75B approx.
How can share price decrease and market capitalization increase ? Mathematically number of outstanding shares need to increase. How can companies print so many shares , diluting existing stock holder's equity?
Mathematically I understand what is market capitalization , but fails to understand that dilution can be so much, a few % point change in number of shares outstanding may be OK, but I see many examples where dilution is more than 100%. How to audit for fraud ?