RBS shares above 200p after consolidation
A Royal Bank of Scotland (RBS) share price rise of 975 per cent ought to be very good news for the taxpayer, unfortunately today's dramatic gains are the result of a share consolidation as opposed to some actual good news for the 84 per cent state-owned lender.
A Royal Bank of Scotland (RBS) share price rise of 975 per cent ought to be very good news for the taxpayer, unfortunately today's dramatic gains are the result of a share consolidation as opposed to some actual good news for the 84 per cent state-owned lender.
The Royal Bank of Scotland's board agreed to give shareholders one share each for every 10 shares they currently hold, pushing the stock price up from around 20p before the bank holiday to 212p as of 11:36.
The idea behind the consolidation is to reduce the volatility of the bank's share price and, hopefully, to improve investor confidence.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In order for the taxpayer to get back the £45bn spent rescuing RBS in 2008 and 2009 the share price would now need to rise to around 500p per share.
BS
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published