• Australian (ASX) Stock Market Forum

Hello and welcome to Aussie Stock Forums!

To gain full access you must register. Registration is free and takes only a few seconds to complete.

Already a member? Log in here.

Free attaching Unlisted Option?

Discussion in 'Beginner's Lounge' started by cthaffy, May 20, 2015.

  1. cthaffy

    cthaffy

    Posts:
    5
    Likes Received:
    0
    Joined:
    May 9, 2015
    Good morning, could someone please explain this for me:

    "for every tow (2) shares subscribed, the Company will issue one (1) free attaching
    Unlisted Option exercisable at $x.xxx on or before (date)

    kind regards
    Chris:1zhelp:
     
  2. skyQuake

    skyQuake

    Posts:
    2,904
    Likes Received:
    45
    Joined:
    May 1, 2007

    You get a free Call Option on the stock. Eg you subscribe for 20,000 shares, you'll get 10,000 free Call Options.
     
  3. pixel

    pixel DIY Trader

    Posts:
    5,200
    Likes Received:
    317
    Joined:
    Feb 3, 2010
    That means, if you buy into this capital raising/ share purchase plan, you will sign up for even more dilution in future, receiving the right to buy half as many shares again at $xx.xx. The proviso being that you can't sell those unlisted options, so your only chance of making any money out of those lies in the hope that the share price will rise appreciably, making it profitable for you to exercise = buy more.

    Listed options have the advantage over unlisted that you can sell them on market to someone that believes in a rising share price and is willing to bet extra money on it.
     
  4. chathurak76

    chathurak76

    Posts:
    1
    Likes Received:
    0
    Joined:
    Nov 6, 2018
    what is the meaning of free attaching Unlisted Option ? I am getting a free share for each two shares or I need to pay $x.xx for each share I am buying
     
  5. So_Cynical

    So_Cynical The Contrarian Averager

    Posts:
    6,648
    Likes Received:
    252
    Joined:
    Aug 31, 2007
    Unlisted means you cant sell it via your broker so its like use it or lose it, the rest is self explanatory.
     
Loading...

Share This Page