I had assumed that the number of stock units was more or less fixed corresponding to x% equity in the company. However, digging through the financials I see that employee compensation RSU's and most of the series funding rounds are fueled with stock units generated out of thin air, diluting all others that currently hold the stock.
Is fairly common for late stage companies to continually increase the number of shares without awarding existing owners more shares to compensate them (as in the case of a split)? It seems odd that a company can arbitrarily devalue your stake. I suppose the restoring force against doing this is that if it was well known the company does this, then very few people would buy the stock or heavily discount what they're willing to pay relative to the present financial fundamentals.
Submitted April 09, 2019 at 03:59AM by 1e6throw http://bit.ly/2I6Dt3d
