gisabeer 409 Posted January 7, 2013 Share Posted January 7, 2013 my old man bought into the share issue to the tune of 900 quid. he got a share certificate saying that he had 1286 shares but each share is worth a penny. i read it and thats what it says. can any one explain? 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted January 7, 2013 Share Posted January 7, 2013 my old man bought into the share issue to the tune of 900 quid. he got a share certificate saying that he had 1286 shares but each share is worth a penny. i read it and thats what it says. can any one explain? There are two different things at play here gisabeer.... 1. The 1p is the PAR value of the share. Which just basically means what it's issued amount is. The club can select pretty much any value they wish for shares but this is what is known as BOOK value effectively. This is nothing to do with how much the share is WORTH. 2. Your Dad got 1,286 shares for 900 quid which means the MARKET VALUE (actually it would technically be the IPO Open value, but a market value nonetheless) was 70p per share. This is what the share was worth when your Dad bought them. From what I read the shares went up in early trading to over 90p per share - so if your Dad wished to sell, using that value, he would get 1,157 quid back. Dont get hung up on the "penny" thing. It isnt a market value, it is just a book value on how much each share is valued at for issuance purposes. What is more important is what the trading value of the shares is presently. At the end of the day shares will be bought and sold for what people think they are worth. Much like your house, people will only buy shares for what they think they are worth - and currently the RFC shares would appear to be worth more than a penny a share. 0 Quote Link to post Share on other sites More sharing options...
gisabeer 409 Posted January 7, 2013 Author Share Posted January 7, 2013 cheers mate for the info. i know nothing about the world of finance. ill pass the info on. 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted January 7, 2013 Share Posted January 7, 2013 cheers mate for the info. i know nothing about the world of finance. ill pass the info on. No problem Sir. Most welcome 0 Quote Link to post Share on other sites More sharing options...
the gunslinger 3,366 Posted January 7, 2013 Share Posted January 7, 2013 i notice the share issue says the rangers international football club. which owns the rangers football club founded 1872. that will have the yahoos complaining no doubt. 0 Quote Link to post Share on other sites More sharing options...
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