HBOS shares

ad44downey

Leeds_Fella wrote: »

Ad44downey,

Did you get hurt by your first ever girlfriend, and was she called HBOS, when you were young?

no, her name was Mavis actually. :rotfl:

and to contradict you, my opinion is more factual than others as I said several months ago that the share prices of HBOS, N Rock, B&B , etc . would continue to fall. And so they did. Unlike the mugs who said that they "couldn't go much lower" ,etc :rotfl:

setmefree

Morning everyone 270.25

bye_bye_band_G

Does anyone understand why, now that the nil-paid rights have started trading today, there is actually a price that can be obtained for them?
As I write the actual share price is 272p, yet the price that can be obtained for a nil paid right is 14p.
Why would anyone pay 14p for the right to buy a share at 275p, when they can buy them on the open market for 272p??

ad44downey

God only knows. Some people would buy anything though, even HBOS shares!

tradetime

bye_bye_band_G wrote: »

Does anyone understand why, now that the nil-paid rights have started trading today, there is actually a price that can be obtained for them?
As I write the actual share price is 272p, yet the price that can be obtained for a nil paid right is 14p.
Why would anyone pay 14p for the right to buy a share at 275p, when they can buy them on the open market for 272p??

Possibly someone hedging / exiting a large / partial short position, assuming they're still allowed to cover shorts with rights issued shares, though I'd imagine preventing it would be easier in theory than practise.

setmefree

Now trading at 272.00

setmefree

Shares close at 278.50

agent_orange_2

Some people out there like to trade in the nil paid rights. They basically follow the main share price. i.e., if the share price rises by a penny the nil paid will rise by a penny, likewise, it will drop by the same amount.
You can basically get a lot more shares for your money, increasing your percentage gains or loses. You could very quickly lose a lot of money, or conversely make vast amount. Traders today, if they had bought and sold at the right time, could have made 100% profit. But it's not for the faint hearted

setmefree

Well just for those of you who think i'm mad

http://www.youtube.com/watch?v=hnzHtm1jhL4

bye_bye_band_G

agent_orange wrote: »

Some people out there like to trade in the nil paid rights. They basically follow the main share price. i.e., if the share price rises by a penny the nil paid will rise by a penny, likewise, it will drop by the same amount.
You can basically get a lot more shares for your money, increasing your percentage gains or loses. You could very quickly lose a lot of money, or conversely make vast amount. Traders today, if they had bought and sold at the right time, could have made 100% profit. But it's not for the faint hearted

I think I see what you're saying. The traders don't actually want to buy the 275p shares at the end, they're just betting on the ups and downs of the nil paid rights price, which fluctuated yesterday between 10p and 21p?

If so, won't these people exit the game before the end, not wanting to be left holding the old maid/hot potato - which actually will really be worthless at the end unless the open market share price rises above 275p?
I was thinking about holding on to my nil paid rights for a couple of weeks to see what happens and then perhaps selling at the end. But if what I think you're saying is true, maybe i should sell now while there are still people playing this gambling game with the nil paid rights price???
Won't those left holding them on the last day just dump them for anything they can get?