cba spp , page-54

rumple,

pretty simple idea of selling higher, buying lower. do people want to sell some of their CBA shares at >$26 and get them replaced at $26 or less by participating in the spp.

ie. if I have held 1000 cba shares for sometime now and I qualify to participate in the spp, in the last couple of weeks I could have sold 384 shares ($10000/$26) at say $28 for $10752, and then replaced the shares I just sold with the ones I get by participating in the forthcoming spp, by sending $10k to the cba spp.

So essentially I have just made $752 for doing a bit of moving cash around.

And since the spp purchase price is lessor of $26 or the avg. of the cob sp 5 days prior to the determination of issuance price then there isn't really much price risk, like there can be with other fixed price spp's.

One risk is though that the spp. will be over-subscribed and they will close it early or scale it back and although you had previously sold your ~$10k worth you might not get allocated the same amount of shares in the spp.

Perhaps if you asked more specific questions, you may get more prompt specific answers.

choice