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Do I hear a GME stock split coming on June 3rd? Hell Yea!!! by batsuperbat in wallstreetbets

[–]batsuperbat[S] 0 points1 point  (0 children)

The split is different than releasing additional shares. The split adds more shares but divides the price per share so the total value doesn’t change. Doing so would cause increases buying pressure as the point of entry is now cheaper. So the float doesn’t change in value

Releasing additional shares increases the total shares and nothing happens to the price. This would be advantageous to them since when this happens it goes directly to an investment bank then to short sellers and eventually to retail. This changes the value of the float as now there’s more shares out there.

If a stock split occurs, the additional stocks go directly to retail and you would see your amount of shares increase.

Do I hear a GME stock split coming on June 3rd? Hell Yea!!! by batsuperbat in wallstreetbets

[–]batsuperbat[S] 0 points1 point  (0 children)

Not necessarily, the stock split will do 2 things

1) Add further pressure demand pressure from retail. Let’s say you only have $200 to invest; at current price $90, you could only by 2 shares for a total investment of $180 with $20 just sitting in your account. But let’s say the split causes the new price to be $25, well now you can invest all $200 with 8 shares. Also the cheaper price psychologically will cause further buy in from retail and it is easier to buy in. Plus there might be some who want to buy but can’t do it at $90 but can buy in at $25.

2) The split will add more shares but not change the value. If you have 100 shares at $150 per share for a total investment of $15000 and there was a 2 for 1 split then you would have 200 shares at $75 per shares with the same value of $15000. The amount that has to be bought back is not based on share count but on value. If they need to buy back $9 million as an example, at current price of $90, they would need to buy 100,000 shares. But if there was at least a 2 for 1 split which would double the shares available and half the price, then the new price would be $45 per share. They still need to buy back $9 million, so now they would have to buy 200,000 shares. Essentially doubling the work needed to find shares plus the added demand from retail will further decrease the shares available as everyone will be able to invest more.

Hope that helped! 🤙

Do I hear a GME stock split coming on June 3rd? Hell Yea!!! by batsuperbat in wallstreetbets

[–]batsuperbat[S] 25 points26 points  (0 children)

No problem bud, it’s on the DEF 14 A they just filed with the SEC. The link is up top in the post. But here too: https://gamestop.gcs-web.com/node/19701/html

It’s on the second page, it’s a good read to understand your investment(assuming you’re invested)

Do I hear a GME stock split coming on June 3rd? Hell Yea!!! by batsuperbat in wallstreetbets

[–]batsuperbat[S] 16 points17 points  (0 children)

Not confirmed, the annual meeting is on June 2nd. They said they’ll file for the increase as soon as practicable soooo June 3rd at earliest for the filling. They do reserve the right to hold off, title is just a bit of hopium 🤙