GME approves 4:1 stock split dividend.
(media.greatawakening.win)
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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.
If that were true, then they wouldn't have to do a split at all. Just hand out free candy.
They started with 300 million shares authorized, and about 75 million issued. Their directors approved an increase in the authorized shares to 1 billion (from 300 million) and a 4:1 split of the 75 million issued, making it 300 million (which is why they also increased the authorized amount).
Those "authorized but unissued shares" have ZERO value ... UNTIL someone makes them have value. It could be done with a secondary offering, a treasury stock buy back, or in the case, a split.
No matter how they do it, there ain't no free lunch (not even free candy).
You still fail to comprehend the difference between a traditional split and one in the form of a dividend. Until you grasp this point there's no use in continuing this discussion.
^ 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.
This move by the company does not change that, which was my point.