Quote:
Originally Posted by Dephormation
If unrestricted shares are £16.00 (bid).
And restricted shares are £11.00.
Then converting 50,000 unrestricted shares to 50,000 restricted shares loses you 50,000 * (£16.00-£11.00) = £250,000.00
Simply to deny the recipient full unrestricted rights.
Why would you do something like that?
|
If I repeat the same calc using the mid point bid/offer for unrestricted shares at around £20.00 the calc gives you a loss of £450,000 by converting the shares. Why would anyone do it if not to deny valuable rights to the recipient?
---------- Post added at 13:02 ---------- Previous post was at 12:52 ----------
Quote:
Originally Posted by HamsterWheel
Dephormation - the reason is no doubt tax.
The shares are of equal value, their prices mirror each other albeit with a time lag as the Reg S shares are thinly held and thinly traded.
|
I've got a £10 note in my pocket here. Its very nice.
Would you care to swap it for a twenty?