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I wonder why we aren't hearing about companies selling more stock for funding. Sure it's at a huge discount, but better dilution than destruction, right? Is it
by 6gvONxR4sf7o 7y ago
I wonder why we aren't hearing about companies selling more stock for funding. Sure it's at a huge discount, but better dilution than destruction, right? Is it just because the bailout loans offer them a better path? Or because they'd rather lay folks off than dilute?
- ryanSrich 7y agoPublic companies have the stock market and private companies have VCs. What do you mean? VCs are talking about how no net new deals are getting done, and the stock market is touch and go each week.
- wool_gather 7y agoAre there enough buyers for stock to make that useful right now? (Non-rhetorical question; I have no idea either way.)
- 6gvONxR4sf7o 7y agoThere's no less cash in the market than a month ago, so at the right price there should be buyers? But since alongside cash, there's also credit and assets, I actually have no idea how much less cash-like "value" there is, even if the fed or somebody helped turn it all into cash. I suppose the government could always be the buyer instead of giving loans. Good question ¯\_(ツ)_/¯