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To: rb22982

Or they use the stock price as collateral, which would be stupid because everyone knows this is going right back to sub $20 a share...


34 posted on 01/28/2021 4:13:00 AM PST by HamiltonJay
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To: HamiltonJay

The company cannot used their stock as collateral without issuing new shares (executives that may not be the case depending on their insider trading policy but that wouldn’t benefit the company). Issuing new shares would simply dilute existing shareholders, especially if they did it without raising capital through a secondary offering, which at least that would in theory would at least keep their EV/share the same, although those typically put at least temporary downward pressure on the stock.


54 posted on 01/28/2021 5:15:52 AM PST by rb22982 ( )
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