GME approves 4:1 stock split dividend.
(media.greatawakening.win)
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I have all of one share. Does that mean I get 3 more for free? Huh? Explain like I’m 5. Chemist is stupid with stocks.
Yes. This is also a dividend not a split.
In a split 1 share becomes 4.
In a stock dividend for every share you hold you are paid a dividend in stock. Usually this is done by a business that wants to reward its shareholders but doesn't have the cash on hand or doesnt want to use its cash on hand. So they'll pay a 5% stock dividend so for 100 shares you recieve 5 more.
They are equally dilutive of share price.
However anyone in a short position has to compensate who they borrowed it from for a dividend, where as for a stock split their short position would multiply too. So shorts will owe back 3 shares more than the 1 they borrowed.
The company itself says it is a "STOCK SPLIT, IN THE FORM OF A DIVIDEND."
Posted 7/6/2022. Did you read it?
https://www.sec.gov/Archives/edgar/data/1326380/000132638022000100/a991-stocksplitannouncement.htm
Your thesis is wrong. Sorry, but that is that.
Bro you're spewing your nonsense all over this thread. It's a dividend wherein the company issues 3 new shares for every 1 share people hold. That's mechanically different from how a split works.
Where do you think the new shares come from? The split, correct? GME owners are not giving you theirs. They have to come from somewhere.
SEC filings are "nonsense" to the stock "experts."
KEK.
Those "new shares" issued are FROM the stock split.
What? You think there is a free lunch?
The way the shorts see it is exactly the same, before and after.
Mr. Short has a 10,000 share short position. Those were shares borrowed from Mr. Long.
Mr. Long gets 30,000 new shares at 1/4 the price, and his total position (40,000 shares long at 1/4 the price), in terms of dollars, is the same. Because now the shares trade on that "split-adjusted basis," which is 1/4 the price.
If Mr. Short was still short 10,000 shares at 1/4 the price, then that would be a 75% PROFIT to Mr. Short, overnight. You really think that's what the company is doing? Or, do you think that Mr. Short is now short 40,000 at 1/4 the price? Which makes more sense?
LOL.
Mr. Long AND Mr. Short are both in the SAME positions after the split/dividend as they were before.
Imagine being short 10,000 shares at $100 = $1,000,000 short. You have to pay back the 10,000 shares, NOT the $1,000,000. Then, the company does a split/dividend, and you are now short 10,000 shares at $25 = $250,000. What do you do? You IMMEDIATELY cover at $250,000 to cash out, and you have a fat profit of $750,000 on a $1,000,000 trade.
NICE!
But it don't work that way ...
If you think it does, then somebody is blowing smoke up your ass.
Lmfao how fucking dumb are you
price drops. you get more shares. your $ value stays the same.
.... you have 1 share at $120. they will cut the value to $30, but you have 4 shares.
advantage: you don't get taxed.
The only real difference I can see between a traditional stock split and a split/dividend is that the basis is different -- which might mean nothing to most GME owners.
Before --
1 share worth $120 each = $120 total value
After --
4 shares worth $30 each = $120 total value
(IOW: Not the big deal some people are hoping for)
not completely accurate. it isn't a split it's a dividend in the form of more shares. the difference is that stock holders are being GIVEN (paid) more shares, wherein normally they just split and the price goes down
Wrong.
https://www.sec.gov/Archives/edgar/data/1326380/000132638022000100/a991-stocksplitannouncement.htm
LOL, You literally say wrong, than contradict and quote "stock dividend" . what part of Dividend don't you understand? good luck with your affairs.
Incorrect. Look at what happened with Tesla post-split.
I did. Nothing really of note happened, is what I see. It was bullish both before and after the split/dividend (they used the same language as GME), but that was during a bull market.
No way to tell if this move made any difference. The price topped a few months later, and has been down ever since.
The price is LOWER today than on the day they made that announcement.
So, what does that prove?
Then you clearly didn't pay attention. Post-split Tesla shot back up to around the same price that it was pre split. That's significant.
Isn't this just lowering the price per share so its easier for them to pay back the short? I'm following you that its a split paid as a dividend
When they buy back a billion fake shares the price will rise a bit.
We're not selling though.