Excuse my lack of knowledge on the share market but GRY has been put into a trading holt and it has something to do with capital raising, is this hood for me or just gives me a chance at options? I don't quiet understand. Any help thanks?
A capital raising is when the company raises more money through offering its shareholders an oppertunity to buy more shares. You have to check whether you are eligable to purchase because sometimes the cut off date is prior to your purchase date. Options may be part of the raising it may just be shares only. You do not buy on market - you are sent notification and given the information of how you can take up the offer. Whether it is good or bad depends on the company and its particulars.
Thank you for your help I only bought the shares last Friday so I may not be eligible They look to be in a good position that's why I bought them, I could be wrong but I'm hoping that gold stocks rise.
You might as well flush it down the toilet or better still send it to me!and I'll buy Gold...............
Just remember why you bought them, and when things move against you that is the time to remember why you bought them again. If you think (med - long term) they will go up, then largely ignore (emotionally) the short term ups and downs. You may want to ignore the captital raising - not willing to risk anymore capital - and thats fine, but dont buy just because you can, if it fits your plan do it, if it doesnt - dont.
ARU - offered a capital raising at .6 c per share and their share price has fallen under that - the share purchase is not underwritten so it looks like they wont get the money they are after which could be a big problem.... Thats why i said about that capital raisings can be bad and can be good depending on the situation of the company.
It also dilutes the capital base, I have found it is generally not positive for most companies in terms of short term share price movements. Longer term though, if the funding gets their project off the ground faster it could be positive.
To purchase share on hope as Warren Buffett so susinctly said of purchasers of IPO's (Initial public offering) is a transfer of wealth from those with no inside knowledge to those with that knowledge. I hope I am wrong in your case. Kind Regards non recourse
I do, I followed them for a while, but never bought in. I see many people come on here saying "I bought such and such today... what do you think about them" Once you have bought the time for research and opinion is over. You have obviously bought for a reason, you hopefully planned your entry and have a goal and an exit strategy. I suggest you do some research on emotions in investing, could help you not freak out in the future.
