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ProShares Short SmallCap600 T.SBB


Primary Symbol: SBB

The investment seeks daily investment results that correspond to the inverse (-1x) of the daily performance of the S&P SmallCap 600 Index. The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the funds investment objective. The index is a measure of small-cap company U.S. stock market performance. It is a float-adjusted, market capitalization-weighted index of 600 U.S. operating companies selected through a process that factors in criteria such as liquidity, price, market capitalization, financial viability and public float. The fund is non-diversified.


ARCA:SBB - Post by User

Bullboard Posts
Comment by bot_feederon Mar 31, 2014 2:18pm
274 Views
Post# 22391242

RE:RE:sabina

RE:RE:sabinaA couple other factors:

1). I'm not sure you can make a royalty into a publicly traded company.  
2). How would the cash from the sale of Hackett shares to outside investors be divvied up between the two companies?  I would assume most would be funneled into SBB, which would be the company that would need most of the cash.  Hackett Co. would just get a little of the cash, enough to run bare bones administration of a company that simply owns a royalty.
3). How much cash would be generated and how many shares of SBB would exist after the deal would depend on how many of their shares SBB shareholders decided to convert to Hackett shares.  I'm not sure how workable a spinoff like this is when the financial details of the post-spinoff companies has that kind of uncertainty.
Bullboard Posts