I am ignorant on finance. But if GameStop had considered to offer new shares, wouldn’t some investment bank have to agree to buy them on an exorbitant price, or could they just sell them on open market?
>They could also sell big lots to banks which planned to immediately flip them to retail investors
No big bank would touch this. An ATM offering had potential, but the amount of exposure this incident had meant that this was a risky grey area - legally and ethically.
Not sure about AMC, but AA certainly has the implicit support of the government. The minute GME became a populist symbol of Main Street vs Wall Street, I think it became toxic.
Of course, I'm speculating. But what else explains it?
