Publicly traded companies create new stock, constantly, in the form of RSUs.
It is true that they aren’t technically selling the stock, they’re diluting existing stock and then using the created stock as compensation, but this seems like an unimportant distinction.
This does grant the company some power. Not obvious to me that power is nefarious, but it’s quite real.
The stock they use for this is not created constantly, it's created in a block set aside for that purpose by board action. Companies do this relatively infrequently.
Comments
Publicly traded companies create new stock, constantly, in the form of RSUs.
It is true that they aren’t technically selling the stock, they’re diluting existing stock and then using the created stock as compensation, but this seems like an unimportant distinction.
This does grant the company some power. Not obvious to me that power is nefarious, but it’s quite real.
The stock they use for this is not created constantly, it's created in a block set aside for that purpose by board action. Companies do this relatively infrequently.