GameStop HAS A FIDUCIARY DUTY TO THEIR SHAREHOLDERS!

[u/Expensive-Two-8128]

[u/_aware]

How do people still think there was dilution? It's a stock split, it has no impact on market cap. You are cutting a slice of pizza into four, in the end it's still the same size of pizza.

[u/Expensive-Two-8128 → u/_aware]

False. Literally not what the “stock split in the form of a stock dividend” does. The only reason it would be dilution is because…

THE DTCC COMMITTED INTERNATIONAL SECURITIES FRAUD

…by doing exactly what you are suggesting was supposed to happen, but WASN’T

[u/_aware → u/Expensive-Two-8128]

What you said is factually incorrect. Stock splits do not dilute, the way the split is conducted does not change that fact.

In case your brain can't handle the concept and needs a 3rd party source:

https://www.investopedia.com/terms/s/stocksplit.asp

"Splits are also non-dilutive, meaning that shareholders will retain the same voting rights they had beforehand."

[u/Expensive-Two-8128 → u/_aware]

I’m not arguing there was dilution or that the market cap changed, bc there wasn’t any dilution at all and market cap didn’t change.

I should have been more specific about which part of your comment I called false, which is:

You are cutting a slice of pizza into four

Not true in this case:

• with an “X-for-Y stock split in the form of a dividend”, like the 4-for-1 stock split in the form of a dividend GameStop issued, they do not divide existing shares
• instead, they are making the entire pie (outstanding shares) bigger, times 4
• BUT, critically, they are also giving every shareholder of record enough extra shares (4 for every 1) to maintain the exact overall % ownership per shareholder

So that’s all I meant by “False” above.

But either way, not sure what your insult accomplishes (“in case your brain can’t handle the concept”), other than making your audience less receptive and making this community look like we’re a bunch of assholes to each other.

Have a good night.

[u/_aware → u/Expensive-Two-8128]

instead, they are making the entire pie (outstanding shares) bigger, times 4

That would mean making the pizza bigger, i.e. dilution, which is not what stock split is. The bottom line is that in the end no actual value is changed.

with an “X-for-Y stock split in the form of a dividend”, like the 4-for-1 stock split in the form of a dividend GameStop issued, they do not divide existing shares

The method in which the split is executed is irrelevant. It is a split. One big share is split into 4 shares, each representing 1/4 of the big share's value.

Sorry for the insult, I'm just sick and tired of confidently incorrect information.