No. of Recommendations: 2
I'm curious to know... if there is so much stock that is so much overvalued, this seems like it would make it a really good idea for the companies whos stock is overvalued to issue more shares. To raise the rate at which they pay employees with stock vs cash. To try to buy stuff with warrants or shares instead of cash. Heck, make it easy: to do Public Offerings to raise billions of trillions of dollars buy selling overpriced shares.
Does this happen much? Is this happening much? If not, why not?
Thank you for attention to this matter!
R:)
Steve Wynn (owner of Vegas casinos) used to do that. Sell shares to raise money and buy back when they were doing poorly. He would take heat because some people said he was taking advantage of people. I'm not sure how to respond to that criticism.
Of course Wynn himself crashed and burn due to improper behavior.
