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This is plain wrong AFAIK. You can't just print Y stock on a whim because that would dilute shareholders.
by lostmsu 1y ago
This is plain wrong AFAIK. You can't just print Y stock on a whim because that would dilute shareholders.
- Voultapher 1y agohttps://money.stackexchange.com/a/155106 https://money.stackexchange.com/a/155106 the argument is that it doesn't dilute the stock because the thing they bought makes the company that much more worth. If they trade newly created shares for a metric ton of gold, that logic seems quite plausible, but it get's more sketchy when things like IP or companies are bought. Or as in this case even more sketchy, where I'd argue this one person will not raise the value of Meta by $250M, effectively scamming the investors.
- lostmsu 1y agoThis generally does not apply to publicly traded companies.
- Voultapher 1y agoSource please. Take for example Nortel, they massively increased their number of shares they years before their crash.
- SJC_Hacker 1y agoDepending on if shareholders have anti-dilution protection, you can It’s typical in startups for early employees to not have thís protection VCs demand it
- lostmsu 1y agoWell, I was wrong. Turns out that's exactly how Facebook pays workers.