Sharesave Help

Tinkerbelle1

I'd like to set up a sharesave but am unsure of exactly how this works.

If im doing a 5 year plan at £150 per month
shares bought at £1.94
options granted 5000 (roughly)

If say for example in 5 yrs the shares are up at £5.00 how much would I make?

I don;t have a clue about how shares work so do you just do 5x5000 ? this seems a bit far off.....can someone please help me with this


thank you

AJ1982

What bank are you with?

marvin

In short yes

the shares are worth what they are worth when you take them. many M&S sharesavers made lots of dosh last year in exactly that circumstance. They had options when the shares were low and got shares worth £5+.

Had I been able to cash in my options in Sainsbury's last year I could have sold the shares at £6 having bought them on an option of £2.31 (a profit of £3.69 per share)

DRS1

The answer is a profit of 3.06 per share. You have an option over 5000 shares so that is 15,000 plus change.

The number of shares under option is worked out at the start based on how much you are saving how long you are saving and what bonus you get at the end. So you don't need to multiply it by eg the number of years you are saving. In fact it works the other way round. If for some reason you don't save for all 5 years you won't get all 5000 shares, if you can, and do, exercise the option early.