GME approves 4:1 stock split dividend.
(media.greatawakening.win)
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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.
They come from the amount of shares GME is authorized to issue.
^ Someone who gets it. A rare thing in this thread.
Kudos.
They seem to think the shares just magically pop out of nowhere ... poof ... and they get free candy in their brokerage account.
Of course, they are fighting against the shorts who get free short shares in their account, but free longs is somehow right and free shorts is somehow wrong.
The whole thing is bizarro world.
SEC filings are "nonsense" to the stock "experts."
KEK.
The filing isn't nonsense, just your interpretation.
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.
It's naked shorting, not regular shorting. These are magical shares created out of thin air. They were never issued.
Lmfao how fucking dumb are you