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iShares Global Materials ETF V.MXI


Primary Symbol: MXI

The fund seeks to track the investment results of an index composed of global equities in the materials sector. The fund seeks to track the investment results of the S&P Global 1200 Materials Index (the Underlying Index), which measures the performance of companies that S&P Dow Jones Indices LLC (SPDJI), a subsidiary of S&P Global, Inc., deems to be part of the materials sector of the economy and that SPDJI believes are important to global markets. It is a subset of the S&P Global 1200.


ARCA:MXI - Post by User

Post by wilwalon Jul 07, 2014 10:00pm
221 Views
Post# 22723371

Options may be in violation.....

Options may be in violation.........of the Company governance in the latest Information Circular of April 20,2014.

The rolling option plan allows for a maximum of 10% of issued and outstanding shares.   According to the web site, there are 155,566,460 shares outstanding.  That would allow about 15.5 million options maximum and they approximately reached the 10% limit last week.   Today's issue of 2.8 million shares puts them that full amount over the limit.  It would appear that they calculated their maximum allowable options based on the fully diltued numbers, including all options issued but not issued and outstanding as shares. This is appears to be wrong.

This is an error that should be corrected.  Shareholders buy into these companies in the expectation that the rules will be followed properly.  I doubt that any shareholders are interested in losing possibily millions of dollars due to an over-issue of options because the costs do come directly out of the other shareholders' pockets should the options move into the money.

I'm sure this is a simple error.  Greg is well respected for honesty in the industry.
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