Citigroup Stock Pre-2008: When Investors Can Never Truly Recover

Most of the time, when we discuss stocks that have been irreparably harmed, we are talking about companies that have gone bankrupt, or have seen prices deteriorate so much that investors will never again so the “good old days” (usually this is the result of some kind of technological shift or high fixed costs that can’t realistically be lowered).

Today, I want to talk about a third kind of harm: share dilution.

Citigroup is one of the best companies that comes to mind I can use to illustrate the principle.

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