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What I mean is, simply buying a company's stock does not immediately benefit them. They have to issue new shares to turn their elevated stock price into cash. S
by btrask 7y ago
What I mean is, simply buying a company's stock does not immediately benefit them. They have to issue new shares to turn their elevated stock price into cash. So if companies simply issued shares, they could raise money and effectively undo all of the buybacks they did. Problem solved, right?
- hnarn 7y agoYes, assuming anyone will buy the stocks, and at the price you want them to...
- btrask 7y agoWell, they can keep issuing stock until their share price hits $0.00. If they still need money, then maybe the state can step in and start buying some.
- sp332 7y agoIf traders credibly believed that a stock's value was going to 0, then the price would already be 0. Just saying in advance that your scheme was about to be implemented would crater the price before any new stock was sold.