Re:Never Hertz to Ask
by nogabebop23 on Sunday June 14, 2020 @09:48AM
(#23517613)
you're talking on a real abstract level, but what do you companies do with the money they raise on th epublic market? I see 3 broad choices: (1) return it to other investors? That would make this essentially a ponzi scheme. (2) Fund expansion in their business? In this case that would likely accelerate the rate at which they turn money into smoke. (3) Buy time to either restructure or significantly change their business model? THis what I think the new investors are betting on (the rational ones at least) but it seems like a real, real long shot, so even the most analytical is attemping to pick the trifecta.
But say they get to the point where their balance is positive because they sold a lot of stock, wouldn’t the price of that stock go back up to the original $20 (or maybe $10, since they basically doubled the amount of shares).