Tritonio: So, as a noob in asset markets I come back with a few questions. 1. Isn't the purpose of an IPO to see how much the market is willing to pay? You list for example 1000 shares and then you wait 2 weeks or so for offers. When the IPO is over you start fullfilling orders starting with the highest price per share and going towards the lowest. Did I say something wrong till now?

Tritonio: Thanks mircea. Second question: If I issue 1000 shares, does each share equal 1/1000th of the company? Or can I state in the contract that shares in total acount for, let's say, 51% of the company?

Tritonio: mircea_popescu, When you offer that another 4mn during the second pass, are the old shares "diluted" or it works like if the second pass shares were owned by the issuer from the beginning?

Tritonio: To work with dillution I suppose you would have to issue more shares, which, depending on the contract, usually needs shareholders agreeing to that, right? Although I am not sure why would they agree to getting dilluted. Unless the expect the company's net worth to rise a lot more (because of the revenue from the sale of the new shares) than the dilution.

Tritonio: So if the operator is the one with the right to issue more shares, he could issue them without asking, and possibly decide to keep them all to himself if the contract doesn't prohibit that. Of course he would fuck up the company and everyone would probably sell their shares and leave but I mean if the contract doesn't stop him, he would be basically running away with the shareholders' money.

Tritonio: Namworld, that's my understanding too. The shared already existed in this case and were held by the issuer/operator and he sold more of them in the second pass. I suppose this also means that the operator was getting a bigger portion of the profits of the company before the second pass.

Tritonio: (The shares*)

Tritonio: Namworld, the second case is btc-mining's case?

Tritonio: I thought the idea of the 40% reinvestement was to avoid issuing more shares if not needed..

Tritonio: You should account for people that just post this to annoy other people, apperently successfully.