Smelly Tiger
2022-07-08

Ok

@windy00：
If I understand this correctly, It is not just stock split, but in the form of dividend. Officially, the company will give you three share for every one share we hold, but price per share will each be one quarter. And, any short sellers must provide three shares per one share shorted. So, the cost will be 75% of the stock price! For example, say the sp is $120 at the final day of eligible dividend. The short seller must then pay for the three additional shares at $30 per share, total $90. I expect they hope the SP doesn’t rally up-to the date, costing more. Is this correct? $GameStop(GME)$
If I understand this correctly, It is not just stock split, but in the form of dividend. Officially, the company will give you three share for every one share we hold, but price per share will each be one quarter. And, any short sellers must provide three shares per one share shorted. So, the cost will be 75% of the stock price! For example, say the sp is $120 at the final day of eligible dividend. The short seller must then pay for the three additional shares at $30 per share, total $90. I expect they hope the SP doesn’t rally up-to the date, costing more. Is this correct? $GameStop(GME)$

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    ·2022-07-17
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