RBS Shares

thefellow

Hi there

i want to invest about £750 in RBS shares,but im a shares virgin can someone give me advice on the best way to do it.

bitterSTAR

I don't have a lot of advice to give, but I use www.iii.co.uk to buy my shares as their fees are quite good, you should allow about a week or so to open an online share dealing acount with any provider though, as they send you a password/pin to your home address (so you can login).

Do you mind if I ask why you have decided to invest in RBS in the current economic climate?

Andrew64

It's very high risk - more like gambling than investing. RBS is at constant risk of full nationalisation and you could lose all your money if you hold the shares overnight.

~Chameleon~

RBS won't be nationalised because the government hold too many shares in it. It would be madness for them to take such a loss.

sabretoothtigger

Better to spend 750 now then last summer, people were taking the same risks then and just didnt realise it

All the same you need to acknowledge you stand to lose it all or double it


Going from 70% shares to 100% doesnt sound like a loss to me tbh but anyhow I doubt the government wants to do it, doesnt mean they wont be forced to from the weight of debt on the bank

McSaver

Book a holiday for the summer

J_Devon

Hoodless brennan operate an online execution only share dealing account which can be opened with £100. Once you have registered and put your money into your hoodless brennan account, you can start trading straight away (in stock market hours obviously).

They charge £8 per transaction.

Ref. the company you are wanting to invest in, the above posters are right. It is a gamble but one I also think is worth taking. I'm able to lose the money I've invested if it goes wrong...nothing ventured, nothing gained. I managed to get some at 10.5, I may get some more.

Good luck!

jebervic

You want to know where to do it, try selftrade @

www.selftrade.co.uk


Just to reiterate what everyone else has said, they are a gamble and you must be prepared to lose the £750, on the other hand you could be looking at £750 becoming £7500 in 2 years time (or less) financials lead the stockmarket into bear markets and as a rule they are the biggest gainers when coming out.

sabretoothtigger

The share price wont go up to a pound again without something dramatic happening like a positive gdp by the end of this year which would be unexpected

as a rule

RBS broke them all, bet on a miracle nothing less

mrposhman

Right, a couple of points.

Selftrade or iii are probably 2 of the best, though depending on how quick you want the shares, you may find it quicker to open an account through your bank as they most likely won't need to prove your id again.

As for the shares of course they are a risk. They won't hit £1 anytime soon as said above but there are more variables than just GDP.

Should RBS start making profit (and cash) they may be able to reduce the number of shares in issue, effectively reducing the dilution that has occurred recently.

I would be surprised if part of the "bailout" package, the government didn't have an exit strategy (which also makes it more unlikely imo that full nationalisation will occur). I would have thought they would have agreed on some sort of package whereby RBS can start to pay the government back.

RBS buying back the shares represents the best way for the government to return their money and take any profit (if at all possible). Should the government fully nationalise RBS they would need someone to spend well around about £28.5bn just to recover their cash (based on £20bn investment at 70% ownership). How likely this is remains to be seen, but for me its rather unlikely, and this is where the governments loss comes from if they fully nationalise RBS.

Just as a side issue, any idea what rate the government got their most recent shares at (preference share conversion). Was this at the original value (65p) or at current market value?

chopperharris

Its a great investment , or a great loss.Currently theres no dividend for obvious reasons.

Look at it this way though , are you a gambler already....ie lotto and horses?If you dont need the money , can take a loss thats complete versus the reward(potential) then do it.

I own several thousand , if i lose them then I'm out thousands on nationalsation but so be it , I pay more than that in tax every year.It is under one percent of my overall portfolio.I bought them for the long punt.I am not talking up the market to make short term money in the troughs.

Rbs need to repay hmg , and will have negotiated a private buy back.These shares dont dilute until they are sold on the open market , which the big players know but hide , but are weary of the banking sector just now.If its a private buyback undilution will eventually happen , and halfway through that at the very longest should see divis again restored.

The volume of shares being traded just now are just dippers in the trough taking advantage of it.....even the big numbers

If you buy them , forget about them.