GameStop seeks to split stock for the first time since 2007, shares jump nearly 17% in after-hours trading (nice jump 😉)
(www.marketwatch.com)
👀 EYES ON! 👀
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This is actually not a split but a stock dividend, i.e. giving new shares to shareholders.
So, if you have naked shorted and created phantom shares, you have to come up with the stock-dividend shares for those phantom shares. (GME naturally only issues those dividend shares to the actual shares of the company.)
I’m not a professional in this field, but that’s my undertanding of the situation.
Edit: Tesla did this in 2020 probably in order to combat short sellers and their stock price went up 80%
Adding onto this, the price is up from 166 to 195 in after hours, and expected to go up further. Over 200 and things start to get spicy. If it gets over 350-400 we are in the same territory as the mini squeeze from last January where their only "out" was to have Robinhood turn off the buy button. Once it gets over this threshold it is likely to continue on up to infinity and we'll see some liquidations of hedge funds and banks that have massively over sold these shares over the past decade. GME is the most shorted stock in the entire market, and shorts have infinite risk.
Looks like they've been able to suppress it. Thinking it might take the actual issuance of the dividend to light the rocket boosters.
Right back to where it was lol.
Thanks for that I didn't get it. Knew people were saying they weren't going to like it but didn't understand how more stock would be bad for them.