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A comment on Suck It, Wall Street. Parent comment

Re:Suck It, Wall Street by BobbyJo on Friday January 29, 2021 @12:08AM (#25954208)
Short sellers aren't holding the bag, they are holding money and owe someone the bag. People who are long are the ones that will suffer when the inevitable crash comes.

Also, I don't believe it's legal for a public companies to issue shares to specific parties at sub-market prices. It certainly wouldn't be legal for the to do it if shareholders didn't approve of it.

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Re:Suck It, Wall Street by perl4ever on Friday January 29, 2021 @01:19AM (#25954634)
GameStop filed in December with the SEC to sell up to $100M in stock at the market, from time to time. Now it seems like a laughably small amount.

I think it is common for public companies to sell stock below market though. If they set a price ahead of time, unlike GameStop in this instance, then the market price will change, right?

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Re:Suck It, Wall Street by BobbyJo on Friday January 29, 2021 @11:20AM (#25958932)
The market price will change yes, but companies have legal fiduciary duty to maximize shareholder value. Purposefully selling shares below value to non-shareholders is obviously a violation of that duty.
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