20
votes
Is it possible for a company to dilute my shares to the point they are insignificant
It will depend on how the shares are set up - if your 1 share is a separate "class" than the founder's shares as defined by the articles of incorporation, then yes it could be possible. If ...
- 140k
7
votes
Is it possible for a company to dilute my shares to the point they are insignificant
Share dilution is a normal process that most companies engage in at some point. Companies may issue new offerings as a way to fund operations and growth. These new issuances absolutely dilute the ...
- 3,994
6
votes
What options do I have if I'm able to buy more shares of a stock than the total supply?
If you place an order for a penny stock and your broker fills the order, you will get the stock. The broker would not debit your account for shares not delivered. If the broker did charge you for ...
- 1,647
4
votes
What options do I have if I'm able to buy more shares of a stock than the total supply?
Why do you think there is anybody to sue?
Suppose I go to the local supermarket to buy 1000 boxes of washing powder. But they only have 50 in stock. Who can I sue? Nobody. I can buy those 50 boxes,...
- 10.9k
2
votes
Why does the range of annual returns of common stock reduce over larger time periods?
When people say that over the long term investing in a broad index fund will return between 7 and 10% a year (depending on how they count dividends), that is what your chart shows.
If you look at the ...
- 144k
2
votes
Would investing in an index tracking S&P500 increase my unsystematic risk?
Vanguard's broad market ETF is VTI. Their S&P 500 ETF is VOO.
The correlation between VTI and VOO is 0.99, which is considered to be high.
https://portfolioslab.com/tools/stock-comparison/VTI/...
- 10.5k
2
votes
Would investing in an index tracking S&P500 increase my unsystematic risk?
In short, yes. Popular S&P500 funds like VOO have over 30% weight in the Information Technology category. To make things worse, in the case of VOO 25% is made up of the top five stocks (which are ...
- 10.1k
1
vote
Would investing in an index tracking S&P500 increase my unsystematic risk?
I see that tech companies have at least 25% of the entire weight.
While the tech world is doing really great, wouldn't this badly affect
the diversification process?
In addition, I am a software ...
- 144k
1
vote
Why does the range of annual returns of common stock reduce over larger time periods?
Here is a simple model which produces a similar chart. Each box-and-whisker simulates 100 investments returning anything between 9% and -8% per month, compounded and annualised. The upper & ...
- 9,967
1
vote
Why does the range of annual returns of common stock reduce over larger time periods?
Let's make sure we're comparing apples to apples here:
I believe this implies that over a larger time period the risk attributed to stocks greatly reduces.
It reduces compared to short-term risk. ...
- 140k
1
vote
Is it possible for a company to dilute my shares to the point they are insignificant
The company’s valuation does not increase, and my share is only worth $1 now.
Not quite ...
Before the share issuance
The valuation of the company is $100. You own 25% of it, so your one share is ...
- 2,917
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