Expert: Paul Henneman - 10/29/2008

Question
Hello, Question,If a company buys property from a owner & the company gives owner a lot of shares of stock lets say 20 millon shares dose that stock go up like someone has just bought 20 millon shares? thank-you.

Answer
John,
   Thank you for your question. Usually yes, an owner of stock in the example you give would be just like any other stock holder who bought the shares.
   However, this does not mean that the stock will go up in price. If the company is performing poorly, or the overall economy continues to decline, the stock can easily go down in value as well.

I hope that this helps. Please do not hesitate to follow up with me if I can be of any additional service,

Sincerely,
Paul Henneman
ValuEngine Inc
www.ValuEngine.com