Isn’t there an option for GME to issue new stock priced below 200/300/400 which can be bought up by the short sellers? That would relieve their short position, allow an influx of cash for GME, and the only ones that would be hurt would be people who bought at a high price hoping to hold out for an even higher price.
Not an expert or even a participant in this whole thing, but it seems to me that if there is a short squeeze (as i understand it after a week of reading the news) that is only bad if there is a limited amount of stock. If GME release new shares and the hedge funds buy up those new shares at a lower price than the WSB 300/400 buys, that could be bad for the WSB crowd.
NB - Not at all sure this is possible, or that GME would want to sell their stock for 100 when there are buyers at 300/400.
Sometimes shareholders have to approve the new issue, sometimes they have first rights on purchase.
Given that the shorters aren't actual shareholders, that might not help.
Then there's the question as to why GME would forego revenue by issuing stock under market price. They're not at any risk at present, so why leave money on the table?
Voting shorted shares is interesting, and I'm curious: Alice borrowed Bob's shares (through the broker, Bob doesn't really know), and Alice sold them to Charlie. I assume Bob doesn't get a vote, even though he thinks he owns a share?
Yes. AMC is reportedly contemplating selling stock, and it's certainly possibly GME could do something similar. Though they'd do it at the best price they can get.
Not an expert or even a participant in this whole thing, but it seems to me that if there is a short squeeze (as i understand it after a week of reading the news) that is only bad if there is a limited amount of stock. If GME release new shares and the hedge funds buy up those new shares at a lower price than the WSB 300/400 buys, that could be bad for the WSB crowd.
NB - Not at all sure this is possible, or that GME would want to sell their stock for 100 when there are buyers at 300/400.