LIC & LIT LIC Options

Discussion in 'Shares & Funds' started by Nodrog, 17th Sep, 2016.

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  1. Nodrog

    Nodrog Well-Known Member

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    Last edited by a moderator: 17th Sep, 2016
    Nodrog, 17th Sep, 2016
    #1
  2. trinity168

    trinity168 Well-Known Member

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    trinity168, 17th Sep, 2016
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  3. Hodor

    Hodor Well-Known Member

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    I don't think it is all bad, like the article points out the initial investors only get around 97 cents of value for their dollar. The options are a way to reward/give incentive to those who initially put their hard earned forwards into unknown territory, the market prices in these options (as the article again points out) so people who jump on the boat are paying a price that includes this dilution.

    All a bit over blown IMO, you need to look at outstanding options on any LIC you are looking at the effect these will have on the price and NTA is taken.
     
    Hodor, 17th Sep, 2016
    #3
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