no_free_lunch Posted February 6, 2014 Share Posted February 6, 2014 I have noticed that it is quite common for small companies (especially microcaps) to have secondary offerings of their shares. Sometimes stock and options are issued as a unit. Generally the offering is below the current stock price and so you effectively get diluted. I am just wondering if this isn't a huge red-flag or if it is just a standard part of investing in micro-caps? If the stock is quite cheap but occasionally does this type of thing, would you still buy it? Link to comment Share on other sites More sharing options...
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