[/caption]
For some strange unfathomable reasons, noble had decided to issue a bonus exercise of 6 bonus shares for every 11 shares held before ex date. Why 11 - a prime number? Wouldn't it round off nicer if the exercise is 6 for 10, or even 6 for 12? In order to round up nicely, investors must hold shares in multiples of the lowest common multiple of 11 and 1000 (who say maths is useless?). However, 11 is a prime number, so you must have 11 lots at the minimum in order not to end up with odd lots. If not, I think the trailing decimal places in the calculation of your bonus shares will be rounded down.
Each share is trading currently at around $3, so 11 lots will cost $33,000. Not a small sum of money at all for retail investors.
I am holding 2 lots of noble, so I'm trying to find ways to circumvent the problem of odd lots. I knew about the unit share market from poems trading platform. It's used to trade shares lesser than the board lot size of (usually) 1000 shares. I think somehow, I've got to use this feature in order not to end up with odd lots.
Here's a few ways that I can think of:
1. Buy 2 more shares from the unit share market, to arrive at a total of 2002 shares of noble before ex date. Since 2002 is a multiple of 11, I'll end up with 1092 bonus shares, giving me a total share after ex date of 3094 shares. Commission structure of unit share market is 0.28%, with a minimum of $10 charge.
Great...it's still odd...not a fantastic idea. I'll have to sell 94 shares or buy another 906 shares from the unit market to end up with nice board lot size. Read more...[caption id="attachment_2270" align="alignright" width="150" caption="Photo by tomsaint11"][/caption]
For some strange unfathomable reasons, noble had decided to issue a bonus exercise of 6 bonus shares for every 11 shares held before ex date. Why 11 - a prime number? Wouldn't it round off nicer if the exercise is 6 for 10, or even 6 for 12? In order to round up nicely, investors must hold shares in multiples of the lowest common multiple of 11 and 1000 (who say maths is useless?). However, 11 is a prime number, so you must have 11 lots at the minimum in order not to end up with odd lots. If not, I think the trailing decimal places in the calculation of your bonus shares will be rounded down.
Each share is trading currently at around $3, so 11 lots will cost $33,000. Not a small sum of money at all for retail investors.
I am holding 2 lots of noble, so I'm trying to find ways to circumvent the problem of odd lots. I knew about the unit share market from poems trading platform. It's used to trade shares lesser than the board lot size of (usually) 1000 shares. I think somehow, I've got to use this feature in order not to end up with odd lots.
Here's a few ways that I can think of:
1. Buy 2 more shares from the unit share market, to arrive at a total of 2002 shares of noble before ex date. Since 2002 is a multiple of 11, I'll end up with 1092 bonus shares, giving me a total share after ex date of 3094 shares. Commission structure of unit share market is 0.28%, with a minimum of $10 charge.
Great...it's still odd...not a fantastic idea. I'll have to sell 94 shares or buy another 906 shares from the unit market to end up with nice board lot size. Read more...
[/caption]
For some strange unfathomable reasons, noble had decided to issue a bonus exercise of 6 bonus shares for every 11 shares held before ex date. Why 11 - a prime number? Wouldn't it round off nicer if the exercise is 6 for 10, or even 6 for 12? In order to round up nicely, investors must hold shares in multiples of the lowest common multiple of 11 and 1000 (who say maths is useless?). However, 11 is a prime number, so you must have 11 lots at the minimum in order not to end up with odd lots. If not, I think the trailing decimal places in the calculation of your bonus shares will be rounded down.
Each share is trading currently at around $3, so 11 lots will cost $33,000. Not a small sum of money at all for retail investors.
I am holding 2 lots of noble, so I'm trying to find ways to circumvent the problem of odd lots. I knew about the unit share market from poems trading platform. It's used to trade shares lesser than the board lot size of (usually) 1000 shares. I think somehow, I've got to use this feature in order not to end up with odd lots.
Here's a few ways that I can think of:
1. Buy 2 more shares from the unit share market, to arrive at a total of 2002 shares of noble before ex date. Since 2002 is a multiple of 11, I'll end up with 1092 bonus shares, giving me a total share after ex date of 3094 shares. Commission structure of unit share market is 0.28%, with a minimum of $10 charge.
Great...it's still odd...not a fantastic idea. I'll have to sell 94 shares or buy another 906 shares from the unit market to end up with nice board lot size. Read more...
