Thread by @WildRhino

#IntoTheDD
#DiluteMeNot

(1/9)

Dilution occurs when note holders or company officers issue new shares, therefore reducing our (shareholders) percentage in the company.

#DiluteMeNot

(2/9)

Dilution can be used to raise capital. But in the OTC, we often see it used as a payday or toxic note holders cashing in. There are several ways to track or predict dilution.

#DiluteMeNot

(3/9)

Transfer Agent Verified--
OTCMarkets.com will report if a company has a stock transafer agent who is reporting the company's outstanding and authorized shares.

#DiluteMeNot

(4/9)

OTC Markets: Security Details (1)--
OTCMarkets.com Security Details provides the amount of shares outstanding (Outstanding Shares) and the amount authorized to be issued (Authorized Shares).

The date indicates when the share structure was updated.

#DiluteMeNot

(5/9)

OTC Markets: Security Details (2)--

In the example below, this company can issue 75,654,400,567 shares, therefore dramatically decreasing your position in this company.

The is calculated by Authorized Shares - Outstanding Shares.

#DiluteMeNot

(6/9)

Financial Reports: Summary¹--
Often the first page of a statement will show the number of shares outstanding for the last 3 quarters.

Financial Reports: Balance Sheet²--
If ¹ fails, the balance sheet shows the shares outstanding at the time of the filing.

#DiluteMeNot

(7/9)

Financial Reports: Convertible Notes--
Convertible Notes are debt that, once matured, can be converted into common stocks, therefore increasing the OS.

The Balance Sheet will report the total amount of debt.

The report will also show the issuance history.

#DiluteMeNot

(8/9)

When the total number of Outstanding Shares equals the Authorized Shares, we consider the OS as maxed.

In order to issue more shares, we often see the Articles of Incorporation amended to increase the AS (or a reverse split).

Review the Secretary of State.

#DiluteMeNot

(9/9)

Stocker.Watch, by @EyesOnMarket, will provide dilution history.