Share Value - Inherited ordinary 10p shares

SparkyDiscus

Hello,

A family member has inherited 1400 Lloyds ordinary 10p shares.. I've had a look at nominal share values and believe the shares should be worth the current value, or no lower than 10p. My understanding and interpretation may well be wrong.

The cheque for the 1200 shares that Lloyds sent in the post only comes to £19.42, which is less than 2p per share. But 1400x£0.42 (lloyds current share price) is £588. Am I missing something here?!?

Any help is appreciated.

diystarter7

You sure its not a dividend? shares valued around 41p per share.

Was their a receipt with it/letter and what did that say?

wmb194

SparkyDiscus said:

Hello,

A family member has inherited 1400 Lloyds ordinary 10p shares.. I've had a look at nominal share values and believe the shares should be worth the current value, or no lower than 10p. My understanding and interpretation may well be wrong.

The cheque for the 1200 shares that Lloyds sent in the post only comes to £19.42, which is less than 2p per share. But 1400x£0.42 (lloyds current share price) is £588. Am I missing something here?!?

Any help is appreciated.

The nominal value only has relevance for primary issuance i.e. Lloyds cannot issue new shares at less than 10p per share. For secondary market trading the price can fall below this.

Is the number of shares 1400, 1200 or something else? Lloyds' most recent dividend was 1.33p per share so £19.42 would equal 1460 shares so, as diystarter suggests, it sounds like a dividend. Perhaps the shares were re-registered in your relative's name rather than sold.

SparkyDiscus

Aah okay, makes sense. Family member said they were selling the shares, so I took that as the were literally taking the shares, no dividend etc..There are multiple share documentation, so i've clearly broken down incorrectly from the description.

Thank you both for your time in answering