Shorting Lloyds

malaguti · Nov 5, 2009

I'm pretty novice to trading so can anybody tell me...
Lloyds is going through a rights issue, which means the price HAS to come down on the ex rights date, 27th November I think. Isn't this a really easy way of picking up points, or am I missing something? Do we get issued with the rights for example, and if so is there any way around this?

Any experience of shorting during a rights issue would be gratefully received

ffsear · Nov 5, 2009

If the price "HAS" to come down, then it will have done already.

N Rothschild · Nov 5, 2009

more to the point will there be any shares to borrow short

brendansvest · Nov 5, 2009

When the rights are issued your position will be cash adjusted accordingly. The rights are at 15p.
Im afraid it isnt that easy.

shavingfoam · Nov 6, 2009

malaguti said:
I'm pretty novice to trading so can anybody tell me...
Lloyds is going through a rights issue, which means the price HAS to come down on the ex rights date, 27th November I think. Isn't this a really easy way of picking up points, or am I missing something? Do we get issued with the rights for example, and if so is there any way around this?

Any experience of shorting during a rights issue would be gratefully received

Never short undervalued securities! Also there are plenty of big players who want to have a chunk of the bank at a discount rate so buying before the RI would be the only way for them to get in "cheaper".

SF

Shorting Lloyds

malaguti

ffsear

Guest Author

N Rothschild

Legendary member

brendansvest

Active member

shavingfoam

Junior member

Similar threads