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Unprofitable Companies Are Flooding The Market With Stock Offerings: What Does It Mean?

Unprofitable Companies Are Flooding The Market With Stock Offerings: What Does It Mean?

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AMC Entertainment Holdings Inc (NYSE:AMC) and GameStop Corp. (NYSE:GME) are the two highest-profile examples of stocks adopted by retail traders that have soared in 2021 — even while the underlying companies were on the brink of financial disaster. GameStop and AMC have both taken advantage of this unlikely scenario to sell millions of new shares of stock into the market via secondary offerings, diluting existing shareholders but raising the critical capital they needed to survive the pandemic.

...read full article on Benzinga

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