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BUY THE DRIP
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Oct 17, 2023 05:02
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Boxturret posted:When it rains do they think its the hedgefund's weather control satellites attempting to cause floods to drive them from their homes?  THEY’RE SHORTING THE SUN
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Oct 17, 2023 13:35
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yook posted:BUY THE DRIP  A butterfly would never lie to me. It's happening, bois!!!11
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Oct 17, 2023 14:14
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yook posted:BUY THE DRIP genuinely thought your avatar was a flexing moth
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Oct 17, 2023 14:59
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JAnon posted:genuinely thought your avatar was a flexing moth Butterfly conversion confirmed? Big if true
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Oct 17, 2023 15:13
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So, hear me out: Ape NFTs are currently worth nothing. If we all get together and buy them, we can control the price!
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Oct 17, 2023 16:00
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Mercury_Storm posted:Apes seem to think they can keep dying companies running (and go to the moon, etc. etc. etc.) just by buying stock, but do companies ever actually use proceeds from stock to fund business operations rather than it just going into investor pockets? In addition to what others have said, this is one of the main purposes of an IPO. Oftentimes a company will decide to go public because that is a way to raise a lot of capital which can be re-invested into the business (although another one of the main goals of an IPO is to give early investors a chance to cash out their investment as well). This is not really relevant for apes, but as a general principle, the initial offering of stock does usually serve that purpose at least partially.
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Oct 17, 2023 16:38
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So what is the point of a stock buyback that you hear about companies doing? Admittedly I’m just now understanding that they only make money on the initial offering of new shares. What’s in it for them to buy them back then?
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Oct 17, 2023 17:16
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Lt. Cock posted:So what is the point of a stock buyback that you hear about companies doing? Admittedly I’m just now understanding that they only make money on the initial offering of new shares. What’s in it for them to buy them back then? I own 20 of these shares making my stake $20. The company buys back 50 of the shares, thus leaving only 50 shares outstanding. The company is still worth $100. The 50 shares now represent $100 in value and thus are worth $20 apiece. My 20 shares are now worth $40. These numbers are dumb and simple and not close to what actually happens but you get the point. If a company does this regularly, investors can infer that they will keep on doing it, so they create the expectation that their stock price will increase, and it can lead to their stock price trading higher on top of the pure increase in value. It can also be more attractive to investors than other mechanisms like dividends because it doesn't create a tax burden. mega dy fucked around with this message at 17:30 on Oct 17, 2023 |
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Oct 17, 2023 17:28
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Lt. Cock posted:So what is the point of a stock buyback that you hear about companies doing? Admittedly I’m just now understanding that they only make money on the initial offering of new shares. What’s in it for them to buy them back then? When a company issues shares, it essentially sells some of its own shares, which makes it money but lowers the price of the stock by increasing supply. A stock buyback is the opposite of that. When a company buys its own stock it spends money to take the stock off the market, decreasing the supply and raising the price. This increases the value of assets held by those who still own shares. Thus, companies like doing stock buybacks because they achieve the primary goal of a publicly-owned business: increasing shareholder wealth. It serves the same purpose as a dividend, but has a few attributes that make it more appealing than a dividend. For example, paying out dividends makes the stock price go down. This is intuitive: if a stock pays out a $1 dividend at 4:00 on the 15th of every month, then obviously the price you would pay to buy a share in that stock on the 15th at 4:01 is exactly $1 lower than you would pay at 3:59. There are other benefits of stock buybacks and other reasons companies prefer doing them instead of dividends but now you get the gist. The reason why lovely dying companies do stock buybacks is because it’s a more legally defensible way of letting shareholders loot the sinking husk before creditors can get their share in bankruptcy.
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Oct 17, 2023 17:30
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mega dy posted:A company worth $100 issues 100 shares (the float), making them worth $1 apiece. To make it a little bit closer to IRL: When the company spends $50 to buy back shares, the value of the company drops by $50 (after all $50 just left), so you have 20 shares worth $20 still. However, now instead of owning 10% of any future cash flows, you own 20%, so if the company produces $10/yr you went from $1/yr to $2/yr. That increase in future cash flows is what increases the price of the shares. Companies like doing stock buybacks because they both increase share price and also increase earnings per share (as there are less shares out there).
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Oct 18, 2023 03:20
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You see if you simply transfer a company’s cash on hand, or take out loans, and put them straight into the biggest shareholders bank accounts, it’s corrupt and illegal. But if you go through this convoluted system it’s fair and meritocratic and therefore Okay.
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Oct 18, 2023 03:34
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Giving cash on hand to shareholders isn't illegal. That's just an ordinary dividend that is the basic thing that a company is supposed to do. e.g. General Mills sells breakfast cereal, makes profit, gives profit to shareholders that own the company in proportion to their ownership stake. There is also very little different about that compared to a small business except scale ("Dentist owns a business => fixes teeth => makes profit => gets money")
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Oct 18, 2023 03:54
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I love this thread because it's a poo poo posty dive into a deranged internet sub culture, but also I keep getting cool practical information about things that have felt incredibly esoteric to me my whole life
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Oct 18, 2023 04:35
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If you ever traded magic cards or pogs  as a kid you basically understand finance. MBA grads are dumb as poo poo: don't let them bamboozle you with jargon.
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Oct 18, 2023 09:42
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exmachina posted:If you ever traded magic cards or pogs MBAs are basically just boy scout badges for useless rich idiots as an excuse to give them sinecures. So much about the world makes sense when you realise that.
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Oct 18, 2023 13:31
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Brokers are starting to delete BBBYQ shares from accounts. It's becoming increasingly difficult to find a silver lining. That 'worthless' has to hurt
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Oct 18, 2023 20:54
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Koburn posted:Brokers are starting to delete BBBYQ shares from accounts. It's becoming increasingly difficult to find a silver lining.
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Oct 18, 2023 20:57
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Koburn posted:Brokers are starting to delete BBBYQ shares from accounts. It's becoming increasingly difficult to find a silver lining. Are the DRS'd shares also getting deleted? If so, I imagine the cries of agony will be especially loud.
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Oct 18, 2023 20:58
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LanceHunter posted:Are the DRS'd shares also getting deleted? If so, I imagine the cries of agony will be especially loud. I'd imagine the opposite: they have a PIECE OF PAPER proving they hold a share. Good thing they insisted on that!
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Oct 18, 2023 21:00
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Koburn posted:Brokers are starting to delete BBBYQ shares from accounts. It's becoming increasingly difficult to find a silver lining. Pretty sure this is what happened to the guy I posted the other day who was suing his brokerage lol
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Oct 18, 2023 21:09
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Koburn posted:Brokers are starting to delete BBBYQ shares from accounts. It's becoming increasingly difficult to find a silver lining. God that screen is brutal
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Oct 18, 2023 21:13
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Lol this is beatiful
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Oct 18, 2023 21:22
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LanceHunter posted:Are the DRS'd shares also getting deleted? If so, I imagine the cries of agony will be especially loud. I would imagine any DRS’d shares were immediately eliminated when the shares were cancelled. What we’re seeing now is brokers getting around to doing the cleanup work of removing the entries for these vacated shares from their databases. DRS shares are not in a brokers’ database, they are directly registered with the company. That being said, DRS never really caught on with the BBBY apes like it did with the GME apes. I’m not quite sure why.
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Oct 18, 2023 21:23
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Shinjobi posted:God that screen is brutal
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Oct 18, 2023 21:33
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thjey will pry those DRSed shares from my cold dead hands
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Oct 18, 2023 21:54
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the shares are worth $0? that just means we can buy infinity shares for zero dollars and end up with infinity squared dollars
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Oct 18, 2023 21:58
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They are all legit parroting the line that "The shares need to be cancelled and removed before shares in the new company can be issued." Bullish. My tits are jacked. Lambos!
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Oct 18, 2023 21:59
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DRS shares stopped existing as soon as
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Oct 18, 2023 22:00
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Oct 18, 2023 22:17
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Hot tip: there are less expensive ways to learn this stuff.
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Oct 18, 2023 22:23
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 "Is anyone else seeing this issue??" The issue where you stuffed pocketfuls of cash into a toilet and now you just heard a flushing sound?
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Oct 18, 2023 22:24
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Well at least they're half right.
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Oct 18, 2023 22:25
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LanceHunter posted:Are the DRS'd shares also getting deleted? If so, I imagine the cries of agony will be especially loud. The DRS shares were deleted first. Apes coped by saying that they were just moving transfer agents due to the reverse triangle secret merger.
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Oct 18, 2023 22:27
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Foxfire_ posted:DRS shares stopped existing as soon as But that database server has a gold fringe, meaning it only applies under admirality law, which means
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Oct 18, 2023 22:32
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https://www.youtube.com/watch?v=i6K_Vi4qCtY
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Oct 18, 2023 22:44
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This person was literally under the impression that the government reimburses every American taxpayer for up to $3,000 worth of stock market losses per year.
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Oct 18, 2023 23:03
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the shares will become more powerful than you can possibly imagine
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Oct 18, 2023 23:03
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Ariong posted:This person was literally under the impression that the government reimburses every American taxpayer for up to $3,000 worth of stock market losses per year. That would be a good use of the tax revenue collected from people not making stupid investment decisions!
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Oct 18, 2023 23:19
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| # ? Jun 2, 2024 17:51 |
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Also, that last person was relying on $3k to not be financially ruined That makes me sad
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Oct 19, 2023 00:16
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