What do reduced/increased/deemed/sold mean in spiking?

First, let’s clarify what are direct and indirect (or deemed) shares first:

Direct shares are shares held in the director's name.

Deemed/Indirect shares occur when the shares are held in a vehicle, like a company of self-managed super fund, in which the director owns a part interest.

In Spiking App:

  • Whenever there is an increase in direct shares: you will see “bought”
  • Whenever there is an increase in deemed/indirect shares: you will see “increased”
  • Whenever there is a decrease in direct shares: you will see “sold”
  • Whenever there is a decrease in deemed/indirect shares: you will see “reduced”

An increase in the total of capital stock showing on a company's balance sheet is bad for investors because it represents the issuance of additional stock shares, which dilute the ownership value of investor's' existing shares.

On the contrary, a reduction is a process of decreasing a company's shareholder equity through share cancellations and share repurchases. The reduction of capital is done by companies for numerous reasons, including increasing shareholder value and producing a more efficient capital structure.

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