The market is so volatile at the moment, the shareprice often...

  1. 1,296 Posts.
    The market is so volatile at the moment, the shareprice often (not always) comes back to the offer price.

    There are many different ways the capital raisings work. Some will only allow you to buy a certain percentage of your holdings, say 10%. Others let you buy up to a certain value of stock. For instance everyone gets a crack at $10,000 stock, no matter how many shares you hold.

    Personally, I wouldn't be holding a small parcel just in case of a capital raising. If it is a good proposition, you will be limited to 10% of your holdings. If it is more for working capital, or the company is in struggle town, the share price will come back, you can pick as many as you want, rather than have your funds locked up while the SPP goes through.

    Nasty feeling when your funds are winging through the ether and the market tanks.
 
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