"The large holder then drives the price down with that 5% of sales leading to a great VWAP and leads to them being issued even more shares."
Not sure I agree. This kind of arbitrage around ex-div dates, assumes that the shares they sell can be re-bought at a price below or close to what they sold them for. Then they can book the profits from better VWAP on the DRP shares.
But its a risk, and they might end up re-buying the shares at a premium and blowing their profits. Remember it takes a huge sell order by one fund to move the market.
Of course, if the fund intended to sell off some shares anyway then it might work, but not sure I agree that this is a tried and true advantage that funds have over retail investors.
BOQ $10, page-558
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Last
$6.20 |
Change
0.010(0.16%) |
Mkt cap ! $4.101B | |||
| Open | High | Low | Value | Volume |
| $6.21 | $6.24 | $6.18 | $7.402M | 1.193M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 8 | 12392 | $6.18 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $6.21 | 5068 | 1 |
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| Last trade - 16.10pm 09/10/2024 (20 minute delay) ? |
| BOQ (ASX) Chart |