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🔥 MY THOUGHTS ON THE AMC DILUTION! SQUEEZE RUINED? - AMC Stock Short Squeeze Update
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Ultimately, dilution is bad for the 'MOASS' every new share issued is 1 less synthetic share out there, shorts buy the new share issued, at the ATM price, closing out of their short, with 0 impact on the price (as these shares aren't bought from the market, they're bought from a separate stash if you will).
However, this 40m share dilution doesn't ruin the MOASS entirely as theres likely 400m+ synthetics out there (4bn pre split).
Dilution is also good for a regular 'short squeeze' (read, 'company becomes more profitable, generating billions with 0 debt and becomes the biggest & best in the entire industry, potentially overtaking Netflix in share price).
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