Matt Levine, Columnist

Short Squeeze as a Service

Avis, SpaceX ESG, carried interest loans, Bain vibecoding and a prediction market index.

If you run a public company and you want to raise money, you can sell stock, but you probably won’t. Many companies feel a certain squeamishness about selling stock, and we have talked a couple of times recently about the “de-equitization” of public companies over the last few decades. Companies mostly buy back stock; they don’t sell it.

One problem with selling stock is the price. If you run a public company, you probably think your stock price is too low. If you sell stock to new shareholders, you are diluting your existing shareholders: You are selling too cheap, transferring some of the company’s existing value to new shareholders at the expense of old ones.

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