WaveWhisperer
Stainless Steel
Might drop a G after the split then DRS
What’s Going On With GME???
- Thread starter I Really Mean It
- Start date
People are misunderstanding what “stock split dividend” means.
It’s not a dividend as in you get cash for holding the stock.
It’s called a “stock dividend” cause you will end up with more shares than you started with, but with the same value.
All stock splits are referred to this way. It’s not a stock split AND dividend. Just the split.
They also want to raise money by offering more shares. I.E. “dilution”
Lower stock price should attract more buyers. That’s usually how stock splits work. Meeting is in June. Stock split probably won’t happen for a couple months after that.
It’s not the “moass dividend” people are assuming. Shorts don’t “have” to close their positions for a stock split But it could trigger the moass through genuine buying pressure.
It’s not a dividend as in you get cash for holding the stock.
It’s called a “stock dividend” cause you will end up with more shares than you started with, but with the same value.
All stock splits are referred to this way. It’s not a stock split AND dividend. Just the split.
They also want to raise money by offering more shares. I.E. “dilution”
Lower stock price should attract more buyers. That’s usually how stock splits work. Meeting is in June. Stock split probably won’t happen for a couple months after that.
It’s not the “moass dividend” people are assuming. Shorts don’t “have” to close their positions for a stock split But it could trigger the moass through genuine buying pressure.
Yeah I might follow suit fukk it I got couple bands I can throw at it.
DatBoiHawk
HAWK
What’s going to stop them from halting every time?
IsThatBrothaMouzone?
Superstar
If the price starts rising quickly, it would get halted anyway. Like if the value rises or drops more than 5 or 10%...they halt trading for like 10 minutes. If people aren't selling, it'll just delay...but not stop the inevitable.
Secure Da Bag
Veteran
I Really Mean It
Veteran
This isn’t dilution, which increases liquidity, since there’s no proportional increase in shares. This is rewarding every stockholder (especially those with holdings in their name) with shares the shorts are obligated to find. Essentially, this isn’t so much a stock split as it is a dividend through stocks, an accounting of which that requires GME to tally each official stock - excluding, again, synthetics - and deliver them to the DTCC. Shorts must also find what’s been loaned and do the same. Their obligation remains the same.
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The split itself isn’t dilution. But from the filing it seems they want to vote on offering more shares. I’m not sure if it’s the same vote as the split vote or if it’s, it’s own thing.
I Really Mean It
Veteran
There will be a vote for approval. What’s crazy, and something about which I was mistaken, is that the value of the shares will not be split. So, let’s say you have 20 shares, and it’s a 5:1 split when the price is $200.
You will now have 100 shares at $200.
Wait what? Isn't the share price split at well?There will be a vote for approval. What’s crazy, and something about which I was mistaken, is that the value of the shares will not be split. So, let’s say you have 20 shares, and it’s a 5:1 split when the price is $200.
You will now have 100 shares at $200.
How do they 5x times the company valuation because of a stock split?
I Really Mean It
Veteran
I honestly don’t know. I’m going off the material I’m reading up about the planned split. When I come upon the reasoning behind that, I’ll post it.
MaxBundles
Veteran
Was waiting on someone to say this. This is what's actually happening
If you missed the game stop play, you haven't, but if you think you did. Just load up on loopring
I Really Mean It
Veteran
No, it isn’t. This won’t dilute the stock, and it will increase the value of your holdings.