# Stock-savvy people - please reply!

**URL:** <https://community.clark.com/t/stock-savvy-people-please-reply/4563>\
**Category:** Investing\
**Created:** [March 2, 2024, 9:17pm UTC](https://community.clark.com/t/stock-savvy-people-please-reply/4563 "2024-03-02T21:17:46Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![JakeW](https://avatars.discourse-cdn.com/v4/letter/j/4af34b/32.png) [@JakeW](https://community.clark.com/u/JakeW)\
**Post date:** [March 2, 2024, 9:17pm UTC](https://community.clark.com/t/stock-savvy-people-please-reply/4563/1 "2024-03-02T21:17:46Z")

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A stock I own put out a proposal and wants a vote for the approval to double the shares of their Class A common stock.  
I understand the term for this is share dilution. Does this necessarily mean that the company is in trouble? It’s not a reverse split but from what I’m reading that it’s still not good for my investment itself but I don’t really see how. If any of you have an opinion/experience with this - your input would be greatly appreciated.

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**Author:** ![butler](https://avatars.discourse-cdn.com/v4/letter/b/ac91a4/32.png) [@butler](https://community.clark.com/u/butler)\
**Post date:** [March 2, 2024, 9:43pm UTC](https://community.clark.com/t/stock-savvy-people-please-reply/4563/2 "2024-03-02T21:43:05Z")

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So they want to issue more stock to raise capital…but for what purpose? Is it accreditive to their EPS? Is it to pay executives ? Has their stock gone up a ton during the rally ?

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**Author:** ![JakeW](https://avatars.discourse-cdn.com/v4/letter/j/4af34b/32.png) [@JakeW](https://community.clark.com/u/JakeW)\
**Post date:** [March 3, 2024, 7:19am UTC](https://community.clark.com/t/stock-savvy-people-please-reply/4563/3 "2024-03-03T07:19:10Z")

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Thanks a lot for your reply.  
Actually the stock has been pummeled by unscrupulous short selling and now trades under $1.00. Even with the current market run-up it’s been struggling.  
I think it’s to raise capital and perhaps avoid a reverse split but I’m not totally sure. The company itself is cutting edge with a lot of contracts including approval for Federal contracts as well so it does seem to be promising.