Hall of Fame Resort and Entertainment Co (HOFV)

[Bigmac83]

I guess we look at it from a different point of view.

You just averaged out the cost per share before and after the merger. That doesn’t explain why people are selling today and doesn’t really mean much in the big picture. We all know your average cost per share goes down after they get multiplied by 1.42.

The share price is always changing so therefore some people may have bought their shares at a lower price pre merger and sell at the same, higher or lower price after the merger. If you sell at the same price as you bought after the merger you made 42% profits. That’s why people are selling right now. There taking profits after their positions multiplied.

So going with your example;
if you bought 100 shares before the merger at $10 a share for a total cost of $1000 and you hold through the merger then decide to sell those same shares at the same price ($10 a share) after your 100 shares was multiplied by 1.42, you would then be holding 142 shares x $10 each = $1420. So that would be $420 In profits due to 42 extra/bonus/free shares now. Maybe free is not the correct terminology If you look at it from an average cost per share , I’ll give you that. I’m just trying to explain the sell off today.

Respectfully all IMHO

GLTYA