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Ryanair Shares Consolidation

  • 01-11-2015 11:03pm
    #1
    Registered Users, Registered Users 2 Posts: 6,274 ✭✭✭


    Hi all

    Could someone please explain the difference between the Capital option and the Income option ?

    In addition, if every 40 shares are swapped for 39, i assume the share price per share will now be higher ?


Comments

  • Registered Users, Registered Users 2 Posts: 952 ✭✭✭Prezatch


    There's a thread here on it: http://www.askaboutmoney.com/threads/ryanair-egm-and-b-share-choices.195949/

    Also, your shares will be worth less. You previously had 40, now only 39. Theoretically I don't think the share price should be affected by this (nothing has changed within the company - future cash flows etc.)


  • Registered Users, Registered Users 2 Posts: 1,788 ✭✭✭Cute Hoor


    As I understand it, the Capital option means that the money you receive will be treated as a Capital Gain for tax purposes, while the Income option will be treated as Dividend income for tax purposes.

    The Capital option should suit anybody paying tax at the higher rate.

    The theory is that the share price should stay pretty much exactly the same before and after the split.


  • Registered Users, Registered Users 2 Posts: 6,274 ✭✭✭championc


    So if the share price remains the same, i've therefore lostabout 2.5% since i've now got 2.5% less in the number of shares held - yes ?


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