Thursday, December 28, 2006 8:07:31 PM
There was this stock owned largely by one person - name escapes me - It was late 90's and he issued a stock offering at $20 per share but you only had to pay $10 but you had to pay the other $10 later. IT was registered in you account to pay $10 and its value wpuld fluctuate with the share price. BUt the PPS fell below $10 and the obligation started trading negtive.
went as low as negative $2.00 - SO yes I could BUY 100,000 ans someone would have to pay me $200,000 BUT I then had an 0bligation to buy 100,00 shares at $10 and obviously PPS was now at $8.
Really it was just a publiclly trading option. - it ended up that many people holding that obligation reneggged on it.
If it ever happened again I would play it and see.
it was on the TSE
Investing is for those who don't know how to trade
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