Forum Archive Index - November 2000

["Wedde, John" <john.wedde@cit.ac.nz>]

Harry,
No quibbling with your maths but would comment as follows. You may pay
25cents for something [in this case a new ffs share]. That does not mean
that the share is "worth" 25 cents, just that you paid that much for it.
Something is only worth what somebody else is willing to pay for it ..... no
more, no less.
Cheers,
John 



                -----Original Message-----
                From:   Harry Jones [mailto:hjones@mail.scis.ecu.edu.au]
                Sent:   Thursday, 9 November 2000 17:09
                To:     sharechat@sharechat.co.nz
                Subject:        Re: Re: [sharechat] FFS Rights

                Peter,
                No one seems to have answered your query so here is my
schoolboy arithmetic.

                A FFS share is currently about 32 cents. When the two rights
are issued and 
                somebody has paid the 25 cents each for them, three shares
in FFS should be worth 
                32 + 25 + 25 = 82 cents. 82 / 3 = 27 or thereabouts. If one
exercises the rights one 
                makes 2 cents on each but on the other hand one loses five
cents on the original 
                share. It is hard to become a millionaire.

                Harry Jones


        
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