Re: [Czechlist] THANKS: diluted shares
- Thanks to Tomas and Jamie for help. As I still don't know any decent Czech
name for basic and diluted shares, I went for the easiest solution -
zakladni and zredene and left the rest upon the client.
----- Original Message -----
Sent: Wednesday, April 30, 2003 3:34 PM
Subject: Re: [Czechlist] TERM: diluted shares
> In a message dated 4/30/03 9:01:28 AM, mjanda@... writes:
> > Yes, Jamie, that's what I understand. Diluted s.= all shares issued. But
> > basic shares the same as common shares ???
> > Probably they are not, as google returns multiple hits of "Basic common
> > shares"
> There's a great dictionary online that I've just found:
> I think you can find something out from their definition of diluted
> "DILUTED EARNINGS
> A situation whereby additional shares of stock were sold to other
> causing the earnings to be spread over a broader base. Thus fewer earnings
> are available for each share unless earnings grow proportionately more
> the number of new shares issued."
> And here is something from the Oxford Dictionary of Finance:
> "DILUTION OF EQUITY
> An increase in the number of ordinary shares in a company without a
> corresponding increase in its assets or profitability. The result is a
> in the value of the shares as a result of this dilution."
> My understanding is that "diluted shares" are what you've got when a
> has issued additional shares without, as the dictionary says, increasing
> assets or profitability. Let's say a company had a million shares
> outstanding, and you owned 100, on which you got a dividend of 0.06.
> the company issues another million shares, and they spread the dividend
> the new total of 2 million shares. Your shares have been diluted
> that diluted literally means "watered down"), and now you're only getting
> dividend of 0.03. This decrease in dividend yield will wind up lowering
> value of your shares.
> [Non-text portions of this message have been removed]
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