Originally Posted by
kiwichick
How can Virgin dilute existing shares? I guess I just don't understand business very well, but I believed when you listed a company, it is broken up into a certain number of shares. Those shares can be sold and traded, but the overall number never increased unless by way of a share split - is this incorrect? If so, then I can't understand why anyone would ever buy a share of a company if the value of those shares could be effectively diluted overnight (which seems to have happened with this HNA sale, diluting AirNZ's share of the company from 26% down to 22.5% according to the NZ Herald this morning).