What's the position of holders of AIB shares if they are taken off the stock market?

[Manta]

What's the position of holders of AIB shares if they are taken off the stock market? Will they be able to offset the losses on them against capital gains, for tax purposes?

 

[Lightning]

AIB shares are being taken off the ISE in late January 2011 and will start listing on the Enterprise Securities Market.

 

[jpd]

They will have to dispose of them in order to concretise the capital loss.

 

[Duke of Marmalade]

I avoid specifically discussing the AIB share price as that is verbotten but consider the following example.

Current market cap of XYZ 10

Actual assets less liabilities somewhere between -5 and + 25, nobody really knows, So XYZ could be potentially worthless, or could be worth 250% of its current market cap.

After government puts 100 into XYZ the situation is as follows:

Market Cap 110

Assets less liabilities somewhere between 95 and 135

Therefore true value of original 10 is somewhere between 8.6 (95/110 x 10) and 12.3.

Thus the result of the dilution is to give a huge underpin to the price but at the same time greatly reduce its upside potential, and yes it becomes a very long term but safe-ish play.