Who can explain me? Why any Issuer can easy increase number of shares?
It had 2 type of issuers.
First type. Look for example in history data:
1.
https://btct.co/security/ACTIVEMINING 2924534->3069481->3071989->3074084, Outstanding 3074084 / 25000000 Issued.
2.
https://btct.co/security/BASIC-MINING ...50000->51625, Outstanding 51625 / 1000000 Issued.
3. and other...
How I understand market cap of ACTIVEMINING is 0.005497*25000000 = 137425 BTC, it's looking huge.
Or BASIC-MINING is 0.149*1000000 = 149000 BTC, it's actualy huge for 1435 Gh or 103 per 1 Gh.
It's ability give issuer to sell evrytime and price can fall 200 times as BASIC-MINING until normal gigahash price.
Second type a bit worse.
1.
https://btct.co/security/COGNITIVE 8619->9032->8619>8620->8629->8809->9709->10420, Outstanding 10420 / 10420 Issued.
This issuer just change Details in Contract & Prospectus and drop new shares into market.
Issuer made it without preffered offer to old shareholder by special price. Is it correct?
May be BTC-TC is big scum? Explain me please!
And sorry for my english.
Very valid concerns. An issuer cannot issue new shares nor change their contract on their own. I have to do it.
On bonds, mining contracts, futures, funds, passthru's, and managed portfolios I adjust share counts by request of the issuer. On revenue shares and 'stocks' I only do it if a motion has passed.
That said, there are definitely ways majority holders and issuers can game the system, just like in the real world. Don't put you coins into the site unless you have read up on an asset and you are confident it is something you want to be involved with.
Cheers.
OK! You answer about second type - it's just my mistake about COGNITIVE (may be).
Real danger for minor investor is fuzzy number of outstanding shares. bASIC-MINER for example. Outstanding 51625 / 1000000 Issued.
Market cap is shares price multiplay by outstanding shares. If Issuer increase it as bASIC-MINER from 50000 to 51625 shares price decrease in inverse ratio.
Nobody in stock market did same things. Evrytime when Issuer want to make new outstanding he must offer by special price new outstanding to old shareholder in extraordinary order. Otherwise major shareholder can make fraud in the law. Please look example above
, but I see here easy ligal way how to fraud vs minor shareholder. In real life it is posible with weak statute where not provided with special offer issue of shares.
P.S.: In BTC-TC present only 2 clear company who define minors: LABCOIN (Outstanding 10000000 / 10000000 Issued), COGNITIVE ( Outstanding 10420 / 10420 Issued). Other is fraud in law.