In this video, longtime Fool contributor Rick Munarriz explains the process but also reveals how new investors can sometimes profit from the transactions.
Give a hoot. Don't dilute.
Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Take-Two Interactive. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.