Some more information - Open Offer?

[jimbob1904]

One the stocks I hold have released news of an Open Offer.

I was always under the impression this was a good opportunity, now I'm not so sure.

Ive looked online at various links but they don't quite answer a few things.

So I've just been reading that with an Open Offer I'm not able to sell the shares i purchase is this correct?
If so, what is the purpose of them?

 

[tomorton]

Interesting - websites have different definitions of this and I wonder why - maybe some are US and others relate to UK practice?

Investopedia says you cannot sell the shares - however, other websites say you can sell the shares once you have them but cannot sell the rights to buy them. Worth checking also if these are "Ordinary Shares" - these can normally be sold without restriction but other types such as acquired through employee issues and options etc. can be restricted.

If this is a company listed on the London Stock Exchange its straightforward to find the RNS notice on their website - this will have the contact details at the foot for further information if needed - londonstockexchange.com.

 

[jimbob1904]

Interesting - websites have different definitions of this and I wonder why - maybe some are US and others relate to UK practice?

Investopedia says you cannot sell the shares - however, other websites say you can sell the shares once you have them but cannot sell the rights to buy them. Worth checking also if these are "Ordinary Shares" - these can normally be sold without restriction but other types such as acquired through employee issues and options etc. can be restricted.

If this is a company listed on the London Stock Exchange its straightforward to find the RNS notice on their website - this will have the contact details at the foot for further information if needed - londonstockexchange.com.

I think you've taught me something that will stay with me forever! The obvious 'why didn't i think of that' comes to mind. Anyway managed to read the RNS and find out everything from why they need the money to how much, their rationale of the discount etc. Thanks Tomorton!