I saw the news about Toshiba being about to go bankrupt. Now I’m wondering if and why these situations are bad for doughter companies, which Toshiba holds a majority of the stock of. Because my thinking is, that Toshiba selling their stock of that saller company is making it cheaper, because theres just more of it. But why is that bad for the smaller company?

It’s just something I’ve been thinking arround and thought, I might be able to find an answer here.

View Reddit by kniegerView Source