capital increase

[investing]

Hello everybody,

how can the news about capital increase be managed?

Which strategies do you use with the capital increases?

What’s the usual behaviour of the option right? In general, if I haven’t the share, is a good idea to buy the option right in order to sell it to higher price?

What’s the usual behaviour of the stock starting from the increase news to the end of the capital increase?

 

[zdreg]

What is your definition of a capital increase?

 

[Damanuelman]

What you do is so ez. Never risk more then 2% max risk per trade. You have to be wrong 50% to blow ut. It's called risk management. Then be patient and use 2-3 risk reward.. There's two options when it comes to the market. Up 50% or down 50% chance. I would cut my losers short and winners I would let them run.

 

[investing]

What is your definition of a capital increase?

Thanks for the question. I mean an increase of the nominal capital

 

[zdreg]

Thanks for the question. I mean an increase of the nominal capital

Is this your definition. "Nominal capital simply refers to the amount of capital--in shares--a company is legally authorized to make available to shareholders. Within the U.S., the nominal capital is generally provided within the company's legal documentation.?"

 

[investing]

Is this your definition. "Nominal capital simply refers to the amount of capital--in shares--a company is legally authorized to make available to shareholders. Within the U.S., the nominal capital is generally provided within the company's legal documentation.?"

Yes, the nominal capital is shown in the company’s legal documentation. Some circumstances, projects, etc. lead the management to finance the company rhrough an increase of the capital. Sometimes the increase of capital occurs through new shares, sometimes by using existing assets of the company. This information in Europe must be public because existing shareholders have the right to buy earlier than others in order to not change their participation % in the company. It’s the option right which allows to the shareholders to buy the new shares to a nominal price in change of a number of older shares. I know the calculus to understand the convenience of the option right.