GameStop is down slightly today, partly due to the company’s plan to issue $1 billion in new shares. While this is likely good news for the company in the long-term, a stock sale would dilute existing shareholders in the short-term. Many have been calling for GameStop to issue new shares for months since the short squeeze started. Generally, companies want to issue new shares to fund expansion plans when the stock is valued relatively highly. Conversely, companies would want to buy back their own shares when the stock is undervalued.
Today in GameStop Options
Today in GameStop Options
Today in GameStop Options
GameStop is down slightly today, partly due to the company’s plan to issue $1 billion in new shares. While this is likely good news for the company in the long-term, a stock sale would dilute existing shareholders in the short-term. Many have been calling for GameStop to issue new shares for months since the short squeeze started. Generally, companies want to issue new shares to fund expansion plans when the stock is valued relatively highly. Conversely, companies would want to buy back their own shares when the stock is undervalued.