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To: rb22982

Don’t know if I agree with that. The stock price gives them a new market cap.. that market cap can be used as justification for borrowing.

Of course the bank would have to be beyond foolish to lend, since everyone breathing knows this is goi f to crash back hard once all the short term short contracts have covered their positions


87 posted on 01/28/2021 7:04:43 AM PST by HamiltonJay
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To: HamiltonJay

Banks, with very rare exceptions, will not let a company use its own stock as collateral. The way you would structure that typically as you describe would be a loan with a conversion option at a certain call price built into the note. Banks will let individuals use stock as collateral at times, but not usually companies - unless its shares in another company.


94 posted on 01/28/2021 9:34:50 AM PST by rb22982 ( )
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