3 ms·

I am ignorant on finance. But if GameStop had considered to offer new shares, wouldn’t some investment bank have to agree to buy them on an exorbitant price, or

• kgermino 6y ago
  They could just sell them on the open market (an At The Market offering). They could also sell big lots to banks which planned to immediately flip them to retail investors.
  • itsoktocry 6y ago
    >They could also sell big lots to banks which planned to immediately flip them to retail investors No big bank would touch this. An ATM offering had potential, but the amount of exposure this incident had meant that this was a risky grey area - legally and ethically.
    • JumpCrisscross 6y ago
      > No big bank would touch this Hire a little bank. Indemnify them. Also, the big banks gladly sold AMC and American Airlines stock.
      • itsoktocry 6y ago
        Not sure about AMC, but AA certainly has the implicit support of the government. The minute GME became a populist symbol of Main Street vs Wall Street, I think it became toxic. Of course, I'm speculating. But what else explains it?
        • JumpCrisscross 6y ago
          > what else explains it? The reasons in the article.