I have a few practical questions with regard to purchasing Bank of Ireland shares.
If I purchase shares today at say .33c each, can the bank issue more shares in the future and mathematically dilute the value of my shares or does a future share issue have no direct mathematical effect on the value of my shares?
As the bank repays the state, would this have a direct effect on a shareholding I took out now?
I appreciate in both scenarios above the market may react and that will effect everybodies shares up or down but what I'm trying to establish in my questions above is whether there is an automatically mathematical recalculation of my share price in either of the scenarios listed above.
If I purchase shares today at say .33c each, can the bank issue more shares in the future and mathematically dilute the value of my shares or does a future share issue have no direct mathematical effect on the value of my shares?
As the bank repays the state, would this have a direct effect on a shareholding I took out now?
I appreciate in both scenarios above the market may react and that will effect everybodies shares up or down but what I'm trying to establish in my questions above is whether there is an automatically mathematical recalculation of my share price in either of the scenarios listed above.