$BBBY short squeeze possibility
Bed Bath & Beyond (BBBY) recently made an announcement about a preferred share offering, which means they plan to sell preferred stocks to raise money. Preferred stocks give the holder a higher priority in receiving dividends and assets in case the company goes out of business, compared to common stocks. It is possible that there is a buyer for BBBY, but this is not confirmed. The announcement also says that the preferred share offering will not reduce the value of common stocks owned by retail investors. However, there may be some reduction in value in the future when warrants (a type of investment) are converted into stocks after a certain price is reached ($6). The money raised from the preferred share offering should give BBBY approximately $1 billion in capital.
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