The company issues them to the diluting company. The shares go from the transfer agent to the broker. The broker typically dilutes a small amount at a time over a period of time so as to not drop the pps precipitously. They do that to maintain the gap of profit (40-45%). Of course, as new notes come on line, the calculation goes lower and lower.
In some cases, when all the shares have been issued by a certain date, and the company needs to get news out, they may request to expidite the share dilution. To me, and in my opinion, this is what we saw yesterday and are seeing today. I do feel we will see bigger T trades.
I’m going to watch
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