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Saturday, November 11, 2017 8:37:09 AM
RE: price marked and commission/charge
I'm not sure how it worked for anyone else or with other brokers.
With Fidelity there were two options. I didn't know that before I called them.
One was to sell the subscription rights on the open market very much like a regular share of stock except that it had, as we know, a limited sales window. Going this route involved the going rate for commissions through their international brokerage service. As I think I've said once or twice before, the commissions for true international trades are quite hefty compared to regular trades in the US markets.
The second option was to sell the subscription rights directly back to the underwriter with the price unknown. Going this route was commission free. The transaction for this second option would be reported when the subscription offer ended. I have no idea how this price was determined. I looked over the documents I could find and didn't see this mentioned anywhere. I could have missed it in one of them but don't think so.
My best guess about the ten cent difference is that Tamhas, through his broker, sold them on the open market (probably with a commission offsetting the better sales price) and yours were sold back to the underwriter, commission free.
While I like seeing what, on the surface, looks like real money in my account the actual end result right now is that the total portfolio value is less than before the offer for the preferential right was announced. It's hard to get happy with that. GE and Elliott Investors have the resources to buy the subscription rights that we've sold.
For General Electric, it's a sure win. They'll get an increase in total share ownership while compelling us to bankroll ArcamEBM A GE Additive Company.
My personal desire would be to have Arcam's non-GE customers buy in and have a meaningful share in the company, possibly with the option of choosing one or more directors. GE would still maintain control of the company. Arcam's real value to everyone would be greater. GE has droves of marketing and executive geniuses that believe that they are doing the best thing for GE - I mean Arcam. Who doesn't think that we'd see increased machine sales if Rolls, or UTC, Arconic, Airbus, Boeing, etc., had a stake in the company? But that's just me.
I'm not sure how it worked for anyone else or with other brokers.
With Fidelity there were two options. I didn't know that before I called them.
One was to sell the subscription rights on the open market very much like a regular share of stock except that it had, as we know, a limited sales window. Going this route involved the going rate for commissions through their international brokerage service. As I think I've said once or twice before, the commissions for true international trades are quite hefty compared to regular trades in the US markets.
The second option was to sell the subscription rights directly back to the underwriter with the price unknown. Going this route was commission free. The transaction for this second option would be reported when the subscription offer ended. I have no idea how this price was determined. I looked over the documents I could find and didn't see this mentioned anywhere. I could have missed it in one of them but don't think so.
My best guess about the ten cent difference is that Tamhas, through his broker, sold them on the open market (probably with a commission offsetting the better sales price) and yours were sold back to the underwriter, commission free.
While I like seeing what, on the surface, looks like real money in my account the actual end result right now is that the total portfolio value is less than before the offer for the preferential right was announced. It's hard to get happy with that. GE and Elliott Investors have the resources to buy the subscription rights that we've sold.
For General Electric, it's a sure win. They'll get an increase in total share ownership while compelling us to bankroll ArcamEBM A GE Additive Company.
My personal desire would be to have Arcam's non-GE customers buy in and have a meaningful share in the company, possibly with the option of choosing one or more directors. GE would still maintain control of the company. Arcam's real value to everyone would be greater. GE has droves of marketing and executive geniuses that believe that they are doing the best thing for GE - I mean Arcam. Who doesn't think that we'd see increased machine sales if Rolls, or UTC, Arconic, Airbus, Boeing, etc., had a stake in the company? But that's just me.
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