Help with shares

Glen_Clark

One new share will not be worth 10 old shares because there will be huge costs involved in doing this.
But there is some marketing logic behind it.
Banks need to inspire confidence to get people to trust and invest in them. Thats why an expensive Granite frontage may be a good investment, when a cheap block wall like the unseen sides and rear walls would do the job just as well.
It doesn't really inspire confidence when the shares are only worth pennies, and likely to remain so for the foreseeable future
Having less shares but each worth pounds instead of pennies is designed to inspire confidence, like that Granite frontage.
Which may be good for business.

melbury

Every penny share that I have owned that consolidated has gone bust:mad:

I get the theory about the value being the same, but in practice that doesn't seem to stack up.

However, perhaps with RBS being a bank it will be different.

Premier Foods have consolidated and they seem to be in freefall:eek:

Glen_Clark

melbury wrote: »

Every penny share that I have owned that consolidated has gone bust:mad:

Well RBS already has - except that it has been bailed out by the taxpayer.
How well it does now depends on how much more of our money the politicians are going to throw at it, directly or indirectly.
To know that you really need inside knowledge of politics, to know or influence the outcome.
Why do you think so many Banks hire ex politicians and make donations to political parties

fiesta04

Glen_Clark wrote: »

Well RBS already has - except that it has been bailed out by the taxpayer.
How well it does now depends on how much more of our money the politicians are going to throw at it, directly or indirectly.
To know that you really need inside knowledge of politics, to know or influence the outcome.
Why do you think so many Banks hire ex politicians and make donations to political parties

Oh how cynical can you get

err let me rephrase that........honest can you get

F4