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QuestionsCategory: Investor PsychologyEps – Dilution
Viv asked 1 year ago

How do you prevent getting into a situation where your share holding is diluted (as reflected in the mp ps) when the company issues new shares?
What can you do if you are in such a situation?

Jieren Zheng replied 1 year ago

Is there a way to subscribe to it?

Else, if the company is really known for dilutive options and stuff, I would sometimes avoid taking a position in it.

Victor Chng replied 1 year ago

Thanks JR

Viv replied 1 year ago


1 Answers
Victor Chng answered 1 year ago

Hi Viv,
As mentioned by Jieren, to prevent dilution, you have to subscribe to the shares if it is offer to you. If there is dilution and shares are not offer to you to subscribe then it is hard to prevent dilution. 

Viv replied 1 year ago

Tq Victor

Victor Chng replied 1 year ago

Welcome Viv :)