Join our investing community
  1. austing

    austing Well-Known Member

    Joined:
    5th Jun, 2006
    Posts:
    386
    Location:
    north maleny
  2. trinity168

    trinity168 Active Member

    Joined:
    16th Sep, 2016
    Posts:
    32
    Location:
    NSW
  3. Hodor

    Hodor Well-Known Member

    Joined:
    17th Sep, 2016
    Posts:
    79
    Location:
    hodor
    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.
     
    austing likes this.