Lloyds Bank shares now 78p

gozomark

consider the following

you own 100 shares in company A - the price is £1

they have a 100% sharesplit, so you now have 200 shares, and the price is 50p. You sell the extra 100 shares at 50p, and think you've made £50 profit as they cost you nothing

sabretoothtigger

Yea but if he sold the shares bought for 38p at 78p market rate, the difference would be greater then any adjustment downwards previously

gozomark

very possibly, depending on the ratio of the rights issue, but its not a simple as bought at 38 sold at 78 therefore 40p per share profit, there is an ofsetting dilution loss, which maybe more or less than this

sabretoothtigger

Surely the share price drop ex-record represented this loss pretty much dead on. If they did a share split 2 for 1 then it'd just half the price right, I think pretty much the same happened here and the right issue was round about .66

All Im saying is the share price has risen so buying more at that point either on the free market or through the rights issue has been a decent bet to date
There has been no dramatic profit from it, the 38p thing is 'fake' and does not compare at all to the people who bought lloyds for 38p in the winter and sold it later for 100p