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It’s front-page news on
Yahoo! Finance this morning. Hot on the heels of the
news that GOOG might jon the Nasdaq 100 and/or the
S&P500 by the end of the year, it was
announced that
Google has filed with the S.E.C. to sell about 14.2-million new Class A shares, thus expanding its float and diluting
its value. Google has not announced any impending acquisitions, and intends to use the cash for general corporate
purposes. Bringing the total number of outstanding Class A shares to 191.1 million, the new offering amounts to an
eight-percent dilution of the float. Investors do not like it when the float’s value is diminished by creating
extra supply, and GOOG dropped over four percent in this morning’s pre-hours trading.
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