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Comment by ksec | Hacker News Reader

In theory, If you are a CEO, and you knew your stock is in bubble, could you have leverage it and borrow as much as you could for low rate, say $200B or more for 2%, and use that buy whatever business when the bubble burst?

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LOL, no CEO's in the modern era aren't interested in buying assets or growing revenues organically. They are interested in juicing EPS from quarter to quarter. That's why 2018 is already set to be the largest in record history of stock buybacks. That means corporations c-suite execs are deciding to go to the bond market & issue debt so they can take that money & use it as an open tender in the market every single day buying back shares so EPS gets juiced (smaller denominator). Then they promptly sell stock options to this new bidder on the open market... beautiful isn't it? 2018 will also be on record as the largest insider selling year & that's no coincidence. It's just like George Carlin said "it's a big fucking club & you ain't in it"

Not sure if when you say CEO, if you are talking about a CEO with his individual personal stock holdings or for the company itself. If its the former, it feels like Mark Cuban did something of the sort with his Yahoo stock with his own personal holdings in Yahoo.

https://www.quora.com/How-did-Mark-Cuban-save-his-wealth-fro...

Yes, and likely in practice too, but in practice you would probably also run afoul of insider-trading laws.

The fiduciary thing to do if you're in this spot is simply to issue equity like it's going out of style: If the market wants to pay you way more than you're worth, take them up on it and stockpile cash for the lean years that are coming. That said, depending on the time horizon of your existing investors, this may not be popular and you may find yourself out of a job.

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