Re:u/DeepFuckingValue and the GameStop Reddit mania
by jjeaff on Friday January 29, 2021 @10:37PM
(#25965763)
You don't need to gain control of the assets. You just sell some of the stock for a profit as it rises (and only getting capital gains tax rates). This can be repeated ad infinitum assuming the underlying asset value grows indefinitely and the stock keeps splitting.
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Re:u/DeepFuckingValue and the GameStop Reddit mania
by Leherenn on Saturday January 30, 2021 @05:36AM
(#25967970)
But someone, ultimately, must be able to. You can't exchange your 1% of shares against 1% of the company assets, unless you have enough share to control the company.
Let's take Facebook, where I think Mark Zuckerberg has ~60% of the shares, and only 40% are on the market, thus even if you buy them all you cannot gain control of the company. You can't extract value from the company from this avenue.
Again, what gives inherent value to a stock is that you, or someone else, will be able at some point to get value from the company itself, not from someone else. In a rational market, a price rise should mean the market will eventually be able to extract more value from the company then thought.