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Finally, we've found a good way to monetize Reddit users!
by iamleppert 6y ago
Finally, we've found a good way to monetize Reddit users!
- koheripbal 6y agoThe correct way for a company to respond to a short squeeze (aside from laughing at the demise of the short sellers) is to issue new stock. Converting debt-to-shares is an equivalent. Company wins, Redditors lose. That's the crazy thing about all this. The stock isn't worth $30, let alone $300. This will all come crashing down, and the most naive later investors are going to be left holding the bag. The guy bagging my groceries yesterday told me he used his stimulus money to buy GME on RobinHood. That guy is probably going to lose that money to the guys that cash out first.
- jannes 6y agoIssuing new stock might be somehow restricted. I am not very familiar with the US laws around this, but on Friday the SEC released a statement which contains a warning about "contemplated offers": https://www.sec.gov/news/public-statement/joint-statement-market-volatility-2021-01-29 https://www.sec.gov/news/public-statement/joint-statement-ma... > issuers must ensure compliance with the federal securities laws for any contemplated offers or sales of their own securities. Does anyone know what that means?