It’s the most important part of the story. It’s so gross that companies can just dilute and create stock out of thin air like this. Why hold stock in Intel if the only people that ever buy the real stock and create buy pressure are the plebs? Here is the previous time…

> Intel stock experienced dilution because the U.S. government converted CHIPS Act grants into an equity stake, acquiring a significant ownership percentage at a discounted price, which increased the total number of outstanding shares and reduced existing shareholders' ownership percentage, according to The Motley Fool and Investing.com. This led to roughly 11% dilution for existing shareholders

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andsoitis 7 days ago | parent | next [-]

> It’s so gross that companies can just dilute and create stock out of thin air like this.

To get money from the outside, you either have to take on debt or you have to give someone a share in the business. In this case, the board of directors concluded the latter is better. I don't understand why you think it is gross.

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93po 7 days ago | parent [-]

To get a share in the business, you can also just buy stock in the business like everyone else, not increasing the total share count or causing dilution. They chose not to do this because it would have been more expensive due to properly compensating existing shareholders. So it's spiritually just theft.

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andsoitis 6 days ago | parent [-]

> To get a share in the business, you can also just buy stock

The business is looking for additional capital. You can only do that by either selling new shares or raising debt.

> in the business like everyone else, not increasing the total share count or causing dilution. They chose not to do this because it would have been more expensive due to properly compensating existing shareholders. So it's spiritually just theft.

Shareholder dilution isn't inherently theft. Specific circumstances, motivations, and terms of issuance have a bearing on whether the dilution is harmful or whether it is necessary for the business.

For instance, it can be harmful if: minority shareholders are oppressed, shares are issued at a deeply discounted price with no legitimate business need or to benefit insiders at the expense of other shareholders, or if the raised capital isn't used effective to grow the company.

Dilution can be beneficial, such as when the raised capital is used for growth, employee compensation via employee stock options, etc.

	▲	93po 3 days ago \| parent [-]
		Intel has treasury shares - its own stock that it owns. It had enough to cover this $5B deal. Nvidia could have bought that without screwing over existing shareholders.

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geertj 7 days ago | parent | prev [-]

> It’s so gross that companies can just dilute and create stock out of thin air like this.

Intel is up 30% pre market on this news so I think the existing shareholders will be fine.

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Mistletoe 6 days ago | parent | next [-]

And it is already trending down today, I wonder how long it will stay up and how long it will take the average investor to figure out NVDA isn't buying INTC on the open market and driving up the price.

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93po 7 days ago | parent | prev [-]

i stole $100 from you, but you later won a scratch off for $300, so my stealing was ok

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