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
https://bitcointalk.org/index.php?topic=125629.msg3085484#msg3085484Sorry again for my english, 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.
burnside, please, change the law!
Hi ventolin. Burnside has never made any claims that he's going to police the exchange that I've seen. Doing so would be a full time job+ in and of itself and would open up a whole new can of worms. Instead he offers a minimal layer of protection by preventing issuers from altering their own contracts and ensuring that shareholder votes are conducted fairly. In addition he's made it very clear in every conceivable way that virtual investors are responsible for their own actions. Exchange moderators are responsible for rating assets and ensuring that issuers follow their contracts. Those that do not do so tend to draw the ire of exchange moderators who vote those virtual assets down over time.
I understand your concerns about shareholder dilution and I share them, but the only additional shares that have ever been issued by bASIC-Mining were issued for a special equipment purchase that was authorized by majority shareholder vote. All shareholders, regardless of the size of their holdings, have benefited from said purchase in the form of increased dividends and opportunities to sell holdings at higher prices. If there's a more fair way to conduct these procedures then I'm sure we'd all like to move in that direction.
There's any number of ways in which large shareholders of any asset can attempt to manipulate share prices and all virtual investors must remain vigilant and protect their own interests regardless of the size of their investment.
Cheers.