Okay, I’m going to give you the right answer here as someone who actually knows how the accounting works. Will probably receive downvotes.
Many stock splits are accounted for in the books as a dividend. That’s literally it. It doesn’t work any different from any other stock split. The WSB know-nothings are pumping this up as the dividend meaning they get free shares, which I assure you is false.
The somewhat more smart lot of them are saying this means the shorts will be revealed because they’ll have to give the dividend back to the original owner. This is also false. When you short SELL, you borrow it THEN SELL IT. The shorts don’t receive the stock dividend.
For all of you reading this post, please stop listening to these reddit finance bros. They continue to embarrass themselves in front of people who actually know how this works, and they’ve been doing it for a year and a half.
