I am a novice to all this, but want to understand things a bit more especially in relation to bank shares at present.
Firstly does anyone see any of the banks going totally into state ownership and their shares being withdrawn from the market?? Or if they were nationalised would they just leave the ordinary shares as is to be traded on the stock market?
As I understand it the governments 10 billion is made up of money from the pension reserve, private equity monies and shareholder monies so the nationalisation of a bank is highly unlikely. If/when this money is pumped in what will be the effect on the ordinary shares of an individual bank, I don't mean this as in how much will they fluctuate, I mean will be a dilution of ordinary shares?
Also if 2 banks merge, what effect does this have on the ordinary shares of both the smaller banks and the bigger bank??
I know these might seem stupid questions to some people but I would appreciate it if someone could give me more info on these issues.
Thanks
Firstly does anyone see any of the banks going totally into state ownership and their shares being withdrawn from the market?? Or if they were nationalised would they just leave the ordinary shares as is to be traded on the stock market?
As I understand it the governments 10 billion is made up of money from the pension reserve, private equity monies and shareholder monies so the nationalisation of a bank is highly unlikely. If/when this money is pumped in what will be the effect on the ordinary shares of an individual bank, I don't mean this as in how much will they fluctuate, I mean will be a dilution of ordinary shares?
Also if 2 banks merge, what effect does this have on the ordinary shares of both the smaller banks and the bigger bank??
I know these might seem stupid questions to some people but I would appreciate it if someone could give me more info on these issues.
Thanks
