Investment & Investing

gah! an investment i made with royal london with the money my dad left me when he died is going downhill. it lost more than 10% of its value in the last 9 months. I feel sad. I don't have anything to pay for currently but i'm feeling shaky about what to do and it is more money than I am likely to ever get together saving (although I suspect not much to some on here). I am not sure if I want advice, I guess more like reassurance, those smart cambridge grads in the city have got a grip on things haven't they?

Sit on it. You're not the only one in such a boat

Thanks skinny!

I mean you pull it out now and cut your losses, but what then will you do? With inflation you're loosing money if it's in the bank. Unless you need it within 5 years of sit tight and don't look. What I'm doing.

I have (had) £10k which we need to renew our ground rent in a year's time which is sitting in my S&S ISA in multiple ETFs. It's now down to £9k and can see things falling further rather than going back up within the next 12 months.

Given that sum won;t be around to see any uptick/market correction over the coming years, should I not just take it out and sit on it rather than risk losing more?

^^^ Unless you're planning on selling it now, or using it as collateral, it doesn't really matter.

Investing (as an off the street punter) is something you do over 10 / 20 / 30 year time scales.

should I not just take it out and sit on it rather than risk losing more

You don't say what kind of ETFs they are but I think a sensible rule is don't invest in equities with cash you will need within 5 years. Same goes for bond funds, maybe slightly shorter horizon depending on the duration.

I think your best bet is to go to cash ASAP.

My pension is worth less than it was at Christmas despite me paying into it for 6 months.
Such is life when investing.

Unless you need it within 5 years of sit tight and don't look.

^ do this

Is this for a job offer or for existing share rewards - im not quite clear from the discussion. Have experience of private and public examples so might have some thoughts if @NickCJ hasn’t already answered

We like the stock
https://www.reuters.com/markets/us/gamestop-announces-four-for-one-stock-split-2022-07-06/

Well that was more a Vietcong bunker than a rabbit hole.

One thing I don’t understand is how a stock split could lead to a squeeze without a recall. If the institutions are selling replicated shares anyway, what’s stopping them from distributing dividends in the form of cloned shares? And if the intention is to have the entire float direct registered, how would quadrupling the float help achieve? If the idea is to reach more shareholders with cheaper shares, wouldn’t buys drive the price up again, returning to square 1?

the one reason i liked gme over all the other stocks that moved in a similar way in jan '21 was it's limited float size albeit at quite a high price. seems like a backwards move to me to free up more shares

i'm still having trouble trying to work out how the stock dividend differs to a stock split, can't seem to get my head around how the situation will be any different after the div. both seem to end up with people having 4x the stock at 1/4 the price so net effect will be same value for the short positions. if anyone can explain the minutiae i would be grateful. it seems that when tesla did a stock split it ended up with the new shares rising in value quickly maybe the same can happen to gme

stock borrow fees and fail to delivers have been ratcheting up over the last few weeks, so there does seem to be some pressure whether it be the div or some other factor (s)

the gme market place was also launched this week bringing in another subset of people to the gme family. investors in nft's and digital games will start boosting revenues and hopefully profits. $3-4mn of business in the first couple of days, ipo'ing that or issuing free shares in that company ( if it becomes an established market place ) to gme holders would be more beneficial to share holders and worse for shorts i can see how that would make a difference. hopefully that might be on the horizon

it seem that when tesla did a stock split it ended up with the new shares rising in value quickly maybe the same can happen to gme

There's little reason from a corporate finance perspective that a stock spit should have any impact on a share price these days. At the margin it might enable a bit more buying demand from those that want to invest in less than one share or one option contract (but fractional share schemes has reduced the important of that).

The reason that they tended to drive stocks upwards massively in 2021 was just memes and conspiracy theories about "counterfeit shares" (see @somethingclever post above)

so the gme " stock dividend "
it appears as though the dtc have issued a notice telling brokers this is a stock split even though it was a stock dividend. surely the dtc can't be that incompetent can they ?
why aren't they acting on the instructions of gme and telling custodians to book it correctly ? they have been given the correct amount of shares to distribute amongst the holders of record. have they found out there aren't enough shares to go round or something ?

and any thoughts on $amtd and $hkd
a small hong kong company with 51 employees goes up 12,000% in 12 months after ipo to become the 25th largest company in the world

Discarded lunch bag spotted in the office...

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chefs kiss

Urgh! Could cross-post that to the Live, Laugh, Love thread as well.

Golf club too?! I was kind of spoilt for choice with this one!

Wow! Whats the back story? Any links?

short it or avoid

But it was a stock split. 4-to-1

Not sure I understand what you're saying. Or is this something different to the split?

Apparently there have been issues where brokers have been acting without client approval and selling them or not issuing them is my understanding. So I assume the authorities had to step in.

(Disclaimer: I've never really done equities operations, so could be talking bollocks).

It's a stock split performed by issuing dividends in the form of additional stock. Market cap cap should remain the same, as the share value of the stock drops proportionally with the increase in issue.

How they should be booked, or how they are managed from a repo / reverse repo / SBL / short selling perspective? Buggered if I remember. It's certainly ripe for more conspiracy lunacy though.

gme announced a stock split by way of a dividend. gme would issue the shares to be used as the dividend to the holders of record, 3x the current share issuance. these would be distributed 3 shares for every one held at record date. different to custodians just splitting each share they held into 4 new ones. the only shares to be used for the dividend would come from gme themselves. booking a stock split would just allow brokers to create shares out of thin air.

the german stock exchange had to issue a notice advising brokers to correct any stock split bookings to stock dividend bookings.

the dtc was still advising a stock split as per yesterday. after computershare got their portion of shares relating to drs'ed shares the balance was sent to dtc to distribute amongst the long positions, custodians seem to be struggling to make the correct bookings, and find the correct shares.

Clearly I misunderstood the brief myself. Thanks for the clarification.

Edit: the div are the shares. Doh. I need more sleep