Lloyds right issue

[dubula11]

This may sound a quite stupid question but i'll ask it anyway, i don't know why I just said that, call it an ice breaker.

If lloyds rights issue is at 38 and half pence and price now is around a pound could you take up he rights issue and sell them straight on the open market.

I would think you probably couldn't and if you can't then when can you sell them?? cheers lads?

 

[foredog]

Once the stock goes ex-rights the ordinary will drop down accordingly so any profit on the nil paid will go on the ordinary.

EG

B4 rights issue lloyds trade at £1 and have a 1 for 1 @ 50p OK so now you'll get 2 Lloy for 150p after they go ex-rights. so the exrights price would be 75p

100 + 50 = 150 /2 =75p

so the nil paid would trade at 25p and the ord 75p

so you've made 25p on the np and lost 25p on the ords