Re:u/DeepFuckingValue and the GameStop Reddit mania
by smattiso on Friday January 29, 2021 @09:30PM
(#25965418)
If they do that it's instant bankruptcy for GameStop. Nobody will ever shop there again. Period. It's over.
Re:u/DeepFuckingValue and the GameStop Reddit mania
by xur17 on Friday January 29, 2021 @10:31PM
(#25965732)
Agreed. I think the smart play is to come out with a grand plan that hopefully entices some people to hold onto their stock and keep the game going. Possibly use this to convince people that a small issuance of additional shares to do X would be a good idea. Then, just live off of the crazy publicity and hopefully good will this affords you.
The primary goal of a stock market is really to allow exactly that. The market determines the cost of capital for each company, thereby influencing the allocation of capital in society. The question then becomes how efficiently the company can put that capital to use.