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https://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
by Voultapher 1y ago
https://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.