Matt Levine’s Money Stuff: Maybe GameStop Is Good Now

June 10, 2021, 5:06 PM

Programming note: Money Stuff will be off tomorrow, back on Monday.


Look the very standard corporate finance theory is that it’s good for a company if its stock price goes up. A company can issue stock; it can, in a sense, make as much as it wants of its own stock for free. If that stock is worth a lot and keeps going up, it can do things with it. It can sell the stock for money and use the money to do business things. Companies usually pay executives largely in stock, and if a company’s stock keeps going up then it ...

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