If they hadn’t done the stock split he’d be at risk of losing his company if he had to pay the tax bill. He’d probably be okay this one time, but if it happened a 2nd time he’d maybe lose it.
Now he cant lose his company to pay the tax bill.
Edit: its possible the 1st one could have made him lose the company though as a 5% tax bill floods the markets with shares and the price cant support it and drops, so he has to sell more shares to pay the bill from the original price he was billed at. But I think he might have been okay with a 1 time hit. We can watch what happens to the stock price when he sells his class C shares and see what would have happened after the fact though.
Edit: people also know he would have to sell before this stock split maneuver happened and could try to take advantage of it to purposefully increase the price before his bill, then depress the price after he got his bill. It could have turned into some hostile action to remove him. That kind of stock manipulation happens all the time.
Thanks for taking the time to explain. Yeah, without that „Stock Move“ He May had to reduce his possession by selling real shares.
Tbh, even I am not a big fan, I think it’s okay like this. I mean, at least he is paying. And it would kinda be unfair de-thronizing him with sanctions.
Also an interesting thought about this being a maneuver. I personally think he will be removed the day, a different (I mean really different) US-Goverment gets voted. He‘s having a good Cooperation with the corrente one.
If they hadn’t done this he would have been at risk. Hes no longer because of this.
What exactly do you mean with being „at risk“? That he could not have paid that?
Even so, I think it is okay. Now he is able to pay the money.
If they hadn’t done the stock split he’d be at risk of losing his company if he had to pay the tax bill. He’d probably be okay this one time, but if it happened a 2nd time he’d maybe lose it.
Now he cant lose his company to pay the tax bill.
Edit: its possible the 1st one could have made him lose the company though as a 5% tax bill floods the markets with shares and the price cant support it and drops, so he has to sell more shares to pay the bill from the original price he was billed at. But I think he might have been okay with a 1 time hit. We can watch what happens to the stock price when he sells his class C shares and see what would have happened after the fact though.
Edit: people also know he would have to sell before this stock split maneuver happened and could try to take advantage of it to purposefully increase the price before his bill, then depress the price after he got his bill. It could have turned into some hostile action to remove him. That kind of stock manipulation happens all the time.
Thanks for taking the time to explain. Yeah, without that „Stock Move“ He May had to reduce his possession by selling real shares.
Tbh, even I am not a big fan, I think it’s okay like this. I mean, at least he is paying. And it would kinda be unfair de-thronizing him with sanctions.
Also an interesting thought about this being a maneuver. I personally think he will be removed the day, a different (I mean really different) US-Goverment gets voted. He‘s having a good Cooperation with the corrente one.