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Their boards authorize it. It takes a phone call to have a board meeting. A company could do a board meeting by tweeting each other if they wanted. Filing th

by thrill 6y ago

Their boards authorize it. It takes a phone call to have a board meeting. A company could do a board meeting by tweeting each other if they wanted. Filing that a private placement (to the short holders) has occurred is followup paperwork. A company that gets immensely overvalued is doing their shareholders a disservice by not capturing that valuation.

jeffbee 6y ago
The articles of incorporation dictate what a company needs to do to issue shares. GameStop, for example, requires a vote of the majority of voting shares (of which there are 50 billion votes among the preferred shareholders and 300 million votes among the common shareholders). That said GameStop is authorized for 300 million common shares and there are only 70 million outstanding according to this table so if their corporate treasury has been at all competent they might be sitting on a huge pile of cash right now.
- IG_Semmelweiss 6y ago
  If they wished a quick way to bankruptcy, that would certainly be it. Make enemies and robbing both your customers and your investors in 1 single move. I don't think there has been anything as foul in history, has there?
  - mike00632 6y ago
    Having a high stock price does altogether nothing for the company if they can't sell stock. Similarly, having a low stock price doesn't bankrupt a company.
    - IG_Semmelweiss 6y ago
      I think you missed my point. Low stock price wont make a company bankrupt, agree. But if in the process of doing so, you stole value from your own 19yr old stockholders.... then its pretty certain you just painted a bulleye on you. And... They are also your targer demographic customer base. Woops! Lets see how quickly your revenues dip to $0 after that. If you have $0 revenue you dont have a business. Period.
      - mike00632 6y ago
        It's GameStop... They already have garbage revenue. They don't have a business. They're failing. Hence the short. Issuing shares while the stock price is high is not only an everyday business move but it's also the correct thing for them to do here. AMC has already done it.

by thrill 6y ago

jeffbee 6y ago

The articles of incorporation dictate what a company needs to do to issue shares. GameStop, for example, requires a vote of the majority of voting shares (of which there are 50 billion votes among the preferred shareholders and 300 million votes among the common shareholders). That said GameStop is authorized for 300 million common shares and there are only 70 million outstanding according to this table so if their corporate treasury has been at all competent they might be sitting on a huge pile of cash right now.

IG_Semmelweiss 6y ago
If they wished a quick way to bankruptcy, that would certainly be it. Make enemies and robbing both your customers and your investors in 1 single move. I don't think there has been anything as foul in history, has there?
- mike00632 6y ago
  Having a high stock price does altogether nothing for the company if they can't sell stock. Similarly, having a low stock price doesn't bankrupt a company.
  - IG_Semmelweiss 6y ago
    I think you missed my point. Low stock price wont make a company bankrupt, agree. But if in the process of doing so, you stole value from your own 19yr old stockholders.... then its pretty certain you just painted a bulleye on you. And... They are also your targer demographic customer base. Woops! Lets see how quickly your revenues dip to $0 after that. If you have $0 revenue you dont have a business. Period.
    - mike00632 6y ago
      It's GameStop... They already have garbage revenue. They don't have a business. They're failing. Hence the short. Issuing shares while the stock price is high is not only an everyday business move but it's also the correct thing for them to do here. AMC has already done it.