Comment by lostmsu
7 months ago
This is plain wrong AFAIK. You can't just print Y stock on a whim because that would dilute shareholders.
7 months ago
This is plain wrong AFAIK. You can't just print Y stock on a whim because that would dilute shareholders.
https://money.stackexchange.com/a/155106 the argument is that it doesn't dilute the stock because the thing they bought makes the company that much more worth. If they trade newly created shares for a metric ton of gold, that logic seems quite plausible, but it get's more sketchy when things like IP or companies are bought. Or as in this case even more sketchy, where I'd argue this one person will not raise the value of Meta by $250M, effectively scamming the investors.
This generally does not apply to publicly traded companies.
Source please.
Take for example Nortel, they massively increased their number of shares they years before their crash.
Well, I was wrong. Turns out that's exactly how Facebook pays workers.
Depending on if shareholders have anti-dilution protection, you can
It’s typical in startups for early employees to not have thís protection
VCs demand it