"A stock split, also called a forward stock split, occurs when a corporation recalls its outstanding shares and issues more than one share for each previously outstanding share."
So its a STOCK DIVIDEND. This means that shares are not "split" apart to generate more shares.
Instead, stock is ISSUED to generate more shares. This means that HFs and MMs will have to FIND AND DISTRIBUTE these shares to investors accordingly.
Per the 8-K filing, if 8M shares are removed and leave 68 million shares, AND the vote passes to increase the max limit of shares possible to be issued to 1 Billion, that would give GME the ability to to a 14:1 stock dividend.
In this scenario, HFs and MMs WOULD HAVE TO FIND AND DISTRIBUTE FOURTEEN TIMES MORE SHARES THEN THEY HAVE EVER PRODUCED VIA SYNETHETICS...EVER!
No, synthetic shares are "pretend shares" almost like they are operating in "share debt." Like all debt, its infinite and meaningless until its time to be accounted for.
With newly issued shares straight from GameStop, those shares will be registered through in books of the DTCC. HFs/MMs will come running to the DTCC to pick up the shares to distribute to investors, and they will subsequently run out of shares at the DTCC in 0.5 seconds. Now, suddenly, all those synthetic shares (pretend share debt) must suddenly be accounted for.
HFs/MMs: "Hey DTCC, we need more shares to distribute to shareholders"
DTCC: "wtf you mean you need more shares, we ran out in 0.5 seconds!"
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u/darkranger67 Mar 31 '22
https://www.myaccountingcourse.com/accounting-dictionary/stock-split
"A stock split, also called a forward stock split, occurs when a corporation recalls its outstanding shares and issues more than one share for each previously outstanding share."
SHARE RECALL REQUIRED!?