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    Joshrdds's Avatar
    Joshrdds Posts: 2, Reputation: 1
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    #1

    Aug 22, 2010, 04:07 AM
    Penny stock going ipo
    I have bought pink sheet share of a company called bankunited. The company announced that they will be going IPO. How can a company have shares for sale (penny stocks via pink sheets) then go Ipo? What does this mean for me?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Aug 26, 2010, 06:24 AM

    It means the value of your stock is about to go down. I would guess that the company is floating a new stock issue in order to raise cash, so the percent of the company that your stock shares represents will be diluted, leaving you with a smaller ownership interest than you had before. Consequently the value of your investment is reduced.

    By the way, according to their web site Bank United is privately held, so I don't understand how you have shares in the company. Is this it?: https://www.bankunited.com/about-us.aspx
    Joshrdds's Avatar
    Joshrdds Posts: 2, Reputation: 1
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    #3

    Aug 26, 2010, 07:21 AM
    That is the correct bank. They released a portion of the stocks for sale. You can buy it as a penny stock right now.
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