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    For people who know shares: what does this mean

    hello as i have a few lloylds shares i recieved this email - what does it mean?
    --------------
    ***FOR INFORMATION PURPOSES ONLY***

    Dear Investor,

    RE: Lloyds Banking Group Bonus Issue

    The Company have announced that as part of the HM Treasury recapitalisation scheme, the Group was required to suspend the payment of cash dividends to ordinary shareholders until the HM Treasury Preference Shares issued as part of the scheme are repaid.

    In the meantime however, the Board has approved a capitalisation issue of 1 for 40 ordinary shares for shareholders on the register at 8th May 2009.

    Timetable of Events
    Dealings commence: 11th May 2009
    ---------------
    does it mean all share trading is suspended for lloylds?

    18 Comments

    I can tell you anything and everything you need to know about that little beauty!

    Original Poster

    cloudthecat;4543058

    I can tell you anything and everything you need to know about that little … I can tell you anything and everything you need to know about that little beauty!



    which is what

    Basically, as you probably know the Govt helped out the Bank with its liquidity problems and so on...

    So... Because the Govt helped them out -

    im a student so only know the basics, but ill say this incase its any use to you,
    I think it means that as the treasury has helped out Lloyds, they wont be paying you any form of dividend this year.

    also that they are selling shares to generate some revenue, and for every 40 shares you own you can apply for one new share

    dont blast me if im wrong

    lol helpful . . . . .

    dosent it mean that you wont get paid a dividend until they recoup what they have put in (the gvt)

    Basically if you own shares on the stated date you will get some bonus shares (1 for every 40 you own) in lieu of a dividend.

    Sorry My Internet Keeps Crashing
    Right - Ready?

    BONUS?!?!?! Hell NOOO!

    For every 40 shares you currently own / hold you will reveive one additional one HOWEVER the share price will - all things being equal - reflet this....

    cloudthecat;4543126

    BONUS?!?!?! Hell NOOO!



    lol maybe not the best description

    foxymissroxy;4543099

    lol helpful . . . . . dosent it mean that you wont get paid a dividend … lol helpful . . . . . dosent it mean that you wont get paid a dividend until they recoup what they have put in (the gvt)


    +1

    so basically what i said in a simple version without a different post for every other word?

    Yes, so basically instead of a divdend cheque for a few quid, as they are losing money hand over fist you will get free shares - 1 for every 40 held

    Better than a poke in the eye basically, worth holding onto LONG term now

    There are different kinds of share holders, each of whom take their place in a pecking order. As an ordinary shareholder you are at the bottom of the pile, with Preference shareholders above you.

    Basically, no dividend will be paid for your ordinary shares until the Preference shareholders have had their shares bought back by the Bank.

    annoys me when i see posts claiming lloyds needed bailing out and were saved by the government etc, people get your facts right.
    Lloyds take over of hbos (to help them and the whole bloody banking system out) was assisted by the government to prevent a wholesale disaster in the financial industries, this lead to lloyds taking a massive hit on their profits but still they managed one.
    Without that takeover, Lloyds would have made healthy profits and really do not deserve the abuse they are getting in the press etc.

    Banned

    maddogb;4544689

    annoys me when i see posts claiming lloyds needed bailing out and were … annoys me when i see posts claiming lloyds needed bailing out and were saved by the government etc, people get your facts right.Lloyds take over of hbos (to help them and the whole bloody banking system out) was assisted by the government to prevent a wholesale disaster in the financial industries, this lead to lloyds taking a massive hit on their profits but still they managed one.Without that takeover, Lloyds would have made healthy profits and really do not deserve the abuse they are getting in the press etc.



    agreed, Lloyds did actually make a profit as published but it was countered by the HBOS loss.

    Preference dividends by law have to be paid out before standard dividends so if there is only enough money for the pref dividends there is no money left over to issue standard dividends.
    And the 1 for 40 is just them trying to bluff you because the whole share capital will increase but everyone will have got slightly more so you are no better or worse off.........
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