Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

United States Oil Fund LP V.USO.RT


Primary Symbol: USO

The investment seeks the daily changes in percentage terms of its shares per share NAV to reflect the daily changes in percentage terms of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the daily changes in the price of a specified short-term futures contract on light, sweet crude oil called the Benchmark Oil Futures Contract, plus interest earned on USOs collateral holdings, less USOs expenses. USO invests primarily in futures contracts for light, sweet crude oil, other types of crude oil, diesel-heating oil, gasoline, natural gas, and other petroleum-based fuels.


ARCA:USO - Post by User

Comment by aweighon Jun 26, 2016 1:03pm
87 Views
Post# 24999482

RE:RE:RE:RE:RE:RE:Gamble.

RE:RE:RE:RE:RE:RE:Gamble.Ah I'm afraid not. If a Co. did a stock split on a 2 for 1 basis that didn't involve the raising of cash then yes the stock price would be cut in half.
If a Co. doubles it's stock outstanding by issuing shares for cash then the price should remain the same.
Think about it for minute.
The stock price didn't fall because they doubled the shares outstanding the price fell because they priced the new shares at a fraction of the then share price. 
If you had a stock trading at $ 50 and did an issue at $ 49.00 the stock might trade down to $ 49.50 or $ 49.25 maybe , and you see this happen all the time. 
What you don't see happen is a Co. trading at $ 50 that does a stock issue at $ 10. and that's pretty much what happened here. The Co. in effect admitted that it was in deep distress and could only raise cash at a very deep discount to it's then market price and investors reacted accordingly and pounded the stock into oblivion.  







RayTee wrote: Looks like we have an einstein among us.  I explained this in a post I put on here earlier.

the #of shares has doubled as a result of the rights offering.   so logically, the share price should be cut in half.

if that's too complicated  for you maybe you should just stick with mutual funds where someone is paid to look at those things for you.


<< Previous
Bullboard Posts
Next >>