hedge question
hedge question
Out of context: Reply #7
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- johndiggity0
private companies can create more shares after a vote by the board of directors. they commonly do this to raise capital, or if they bring on new investors, to give them interest in the company. likewise, anyone wishing to sell their shares is usually at the mercy of the board's decision as the shares can only be sold to current shareholders. you selling your shares would decrease the value of existing shares.