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The SEC stopped Hertz from issuing shares because the prospectus was basically "even with this infusion of cash we're going to go bankrupt and you'll lose all y
by plorkyeran 6y ago
The SEC stopped Hertz from issuing shares because the prospectus was basically "even with this infusion of cash we're going to go bankrupt and you'll lose all your money." The ideal meme stock would be one where the company has short-term cashflow problems and so is heavily shorted by investors expecting it to go bankrupt, but which aren't actually just doomed money pits.
- jjeaff 6y agoGamestop is actually profitable. Their stock has taken a hit because people believe there is little future. But its financial situation is not nearly as dire as Hertz or other highly leveraged companies.