Lloyds announces equity placing

sabretoothtigger

madkid88 wrote: »

What do you mean the small holders. You suggest I sell them?

Its bad advice to tell people when to sell/buy on a forum imo, I was just trying to highlight an option & Im not sure myself. Small holder is the little guys, private investor, forum posters

Lloyds have been nice, people dont even have to invest money in buying the new shares to profit from the gain or so it appears.
Ive not really looked closely tbh

Theres three times to sell maybe, before wed, after wed and then when to sell the 38p shares.
Because Im fairly clueless on the exact dynamics but optimistic in the (very) long term I guess I'll hold while hedging elsewhere

cornflakes packets

yea I remember the cornflakes thing previously also

It doesn't really matter how many shares they create, the worth of the company doesnt change and is this case any dilution to individuals will be compensated it appears.
A normal rights issue I think the idea is you gain the value in rights (which you sell) equivalent to the dilution. This issue appears similar but always check stuff yourself because Im never 100% sure myself tbh

http://www.investopedia.com/terms/t/theoreticalexrightsprice.asp

http://www.investopedia.com/search/searchresults.aspx?q=rights+issue&submit=Search