Well said Wang. I think there are a couple of ways to look at it. Take DJW for example, trading at a 39% premium recently and its DRP price is the 5 day average sp ex div. This means that you get more shares via the DRP than you would have if it was priced at NTA. If then you get a SP collapse (like PGF did from $1.10 to $0.89), you have been given a bigger exposure to take a hit on. But the converse may also be true. Perhaps a more even outcome would be to price at NTA, who knows. But goddie3shoes, I don't think you can say people are getting 'sucked in'. That is just demonstrating a lack of understanding of how LICs and the premium/discount to NTA issue works.
Ann: Dividend Reinvestment Plan, page-4
-
- There are more pages in this discussion • 14 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add PGF (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$2.34 |
Change
-0.020(0.85%) |
Mkt cap ! $1.120B | |||
| Open | High | Low | Value | Volume |
| $2.36 | $2.38 | $2.32 | $800.6K | 341.6K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 10686 | $2.34 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.35 | 20000 | 1 |
View Market Depth
| Last trade - 16.10pm 31/10/2024 (20 minute delay) ? |
| PGF (ASX) Chart |