Share Prices

[M4TTA]

Was looking at thetakeoverpanel today just out of interest and noticed something that i thought was rather interesting.

 

We have 3 clubs up for takeovers at the moment in the premier league.

 

Us

West Ham

and the Biggest club in the league, Newcastle.

 

The share prices for the 3 clubs are:

 

OFFEREE: Liverpool Football Club & Athletic Grounds Plc

 

500p ordinary

 

NSI: 34,823

 

OFFEROR: No named offeror

 

 

 

OFFEREE: West Ham United Plc

 

25p ordinary

 

NSI: 20,202,352

 

OFFEROR: Kia Joorabchian

 

Rule 2.10 information not available

 

OFFEROR: Eggert Magnusson

 

Rule 2.10 information not available

 

OFFEREE: Newcastle United Plc

 

5p ordinary

ISIN: GB0006572795

NSI:133,107,121

 

OFFEROR: Belgravia Group

 

Rule 2.10 information not available

 

 

 

The Difference in price is remarkable.

[Will]

OFFEREE: Liverpool Football Club & Athletic Grounds Plc

 

500p ordinary

 

NSI: 34,823

Can someone who knows more than I explain how the alleged price of our shares is only £5 when they cost closer to 1,000 times that? I know it's to do with supply and demand - but why are they down as 500p?

[Gerry]

That's the nominal price of the share isn't it? Nothing to do with the actual price of the share.

[Tosh]

That's the nominal price of the share isn't it? Nothing to do with the actual price of the share.

is the correct answer.

 

Not to mention the fact that any "takeover" has to buy

a) the shares

b) at market price

 

 

So if we had 1000 shares valued at £1000 each and Newcastle had 1,000,000 valued at £1 each the buyout cost will be the same...

[Falconhoof]

so why is the nominal price £5 and not 5p ?

[RP]

Was looking at thetakeoverpanel today just out of interest and noticed something that i thought was rather interesting.

 

We have 3 clubs up for takeovers at the moment in the premier league.

 

Us

West Ham

and the Biggest club in the league, Newcastle.

 

The share prices for the 3 clubs are:

 

OFFEREE: Liverpool Football Club & Athletic Grounds Plc

 

500p ordinary

 

NSI: 34,823

 

OFFEROR: No named offeror

 

 

 

OFFEREE: West Ham United Plc

 

25p ordinary

 

NSI: 20,202,352

 

OFFEROR: Kia Joorabchian

 

Rule 2.10 information not available

 

OFFEROR: Eggert Magnusson

 

Rule 2.10 information not available

 

OFFEREE: Newcastle United Plc

 

5p ordinary

ISIN: GB0006572795

NSI:133,107,121

 

OFFEROR: Belgravia Group

 

Rule 2.10 information not available

 

The Difference in price is remarkable.

 

If by 'remarkable' you mean 'irrelevant' then I agree with you.

[Spoone]

so why is the nominal price £5 and not 5p ?

 

Its just a token price given to the shares on their issue or when the company is set up. The price then rises (or falls) in respect to demand and market forces. If you like its just the starting price of an auction that can go up or down for the duration of the company's existence.

[Gerry]

so why is the nominal price £5 and not 5p ?

 

Why wouldn't it be £5? The nominal price of a share is just the original price of the shares when they were first issued.

[M4TTA]

If by 'remarkable' you mean 'irrelevant' then I agree with you.

 

O, i may not know the ins and outs of this, i just thought the difference was rather huge. that is all.

[RP]

O, i may not know the ins and outs of this, i just thought the difference was rather huge. that is all.

 

 

 

There are no implications at all in this difference. May seem confusing, but just ignore it.

 

 

All you need to know is the current share price and the number of shares issued - that'll tell you what the Club 'is worth'.