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Boeing to sell at least $10B in shares to plug cash drain

(www.wsj.com)
32 points bookofjoe | 2 comments | 15 Oct 24 21:34 UTC | HN request time: 0.687s | source
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xracy ◴[15 Oct 24 21:54 UTC] No.41853512[source]▶
Gosh, would be real cool if they hadn't bought all those shares, and just had the cash on hand to help... I don't know... invest in engineering and making planes fly with doors on them.
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financetechbro ◴[15 Oct 24 22:32 UTC] No.41853813[source]▶
You misunderstood the article, Boeing is issuing new shares in order to bolster their cash on hand inventory. They’re issuing shares that didn’t exist before to raise new capital.
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bryanlarsen ◴[15 Oct 24 23:41 UTC] No.41854236[source]▶
Boeing did $43B of stock buybacks in the 2010s. In practical terms those shares did exist before.

I don't know whether they retired the stock they bought back or put them back into the treasury, but in practice it's basically the same thing. Shares are fungible.

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1. financetechbro ◴[16 Oct 24 17:07 UTC] No.41861371[source]▶
Shares are not fungible, these are not NFTs. The accounting nuances of how the buybacks are handled is not relevant here.

The issuance of new shares requieres new legal docs, and is constrained by the article of incorporation. A company will have to amend their articles of incorporation to issue shares beyond the allotted amount decided at the time the docs were created/filed.

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2. xracy ◴[16 Oct 24 19:18 UTC] No.41862772[source]▶
"Shares are not fungible, these are not NFTs. "

This sentence is contradictory. Shares are either fungible (they are), or they're not, in which case they are 'non-fungible', like "non-fungible tokens."

In this case they are, because one share is like another. If you and I both have boeing shares, we can trade one for the other, and still feel like we got a fair trade. Additionally Boeing has the ability to mint new shares. And if they do that, they mint shares like yours and mine.