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Farther down it's stated that, as an outcome of this tactic ... "At any given point in time more than 100 emerging companies are under attack as described abov
by 8bitsrule 6y ago
Farther down it's stated that, as an outcome of this tactic ...
"At any given point in time more than 100 emerging companies are under attack as described above....
The success rate for short attacks is over ninety percent—a success being defined as putting the company into bankruptcy or driving the stock price to pennies. It is estimated that 1000 small companies have been put out of business by the shorts. Admittedly, not every small company deserves to succeed, but they do deserve a level playing field...."
- Raidion 6y agoSee that's what I don't follow. For most companies, when they IPO, they have the cash on hand from going public. The stock price doesn't really matter anymore for day to day running of the company. Sure a lower stock price long term means that they need to up RSU compensation or won't be able to raise money again, but do those really kill a company? I IPO for 20 million, giving me 18 months of runway. My stock instantly gets shorted a ton, then what? How does that impact me? How does that put someone out of business? If someone thinks that a company is profitable, they can always invest AND that investment is cheaper because of the 'excess' selling of the shorts. I don't follow how shorts kill companies.
- 8bitsrule 6y agoEver heard of “The great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”? New variant: https://prospect.org/power/wall-street-gambling-from-inside-the-house-gamestop-spacs/ https://prospect.org/power/wall-street-gambling-from-inside-...