tag:blogger.com,1999:blog-6704573462403312459.post2883137381146600182..comments2024-03-28T06:53:23.473-04:00Comments on Moneyness: The French shareholder revolutionJP Koninghttp://www.blogger.com/profile/02559687323828006535noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6704573462403312459.post-13090705642789775362016-09-26T12:11:24.788-04:002016-09-26T12:11:24.788-04:00"ETF would not be able to serve the full bonu..."ETF would not be able to serve the full bonus dividend to its holders but at least a "more than standard" dividend"<br /><br />Fair enough. They'd be able to participate, but not to the degree of an equity deposit. <br /><br />Just a side note, but my favorite structure allows new investors to immediately lock-up their shares and start getting the bonus dividend, the condition of the lock-up being that the investor cannot sell until two years have expired. <br /><br />ETFs would not be able too participate in a lock-up program, equity deposits would have for more latitude to do so. So equity deposit owners would start enjoying bonuses far earlier then ETF owners, who would only qualify after two years have passed.JP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-90307827007913475872016-09-26T07:27:58.592-04:002016-09-26T07:27:58.592-04:00I still think Theta has an idea.
ETF would not be ...I still think Theta has an idea.<br />ETF would not be able to serve the full bonus dividend to its holders but at least a "more than standard" dividend<br />But there might be complications: if FIFO is applied, then each day with net redemptions of the ETF decrease the number of shares eligible to bonus, replaced the next day (supposedly with net subscription of ETF) by shares which are 2 yrs away from bonus eligibility.<br /><br />PS: in the case of Air Liquide, the loyalty scheme requires that shares are "nominative" (booked in your account opened specifically in a broker chosen by the company and not your usual broker) so that they have information on your identity and how long you had the shares. And as far as I know, same condition applies for the other companies who offer the loyalty scheme Jerome Druesnehttps://www.blogger.com/profile/04566488411204989326noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-38906272236283456362016-09-24T09:26:27.449-04:002016-09-24T09:26:27.449-04:00ETFs promise unlimited redemption on demand to &qu...ETFs promise unlimited redemption on demand to "authorized participants" in underlying shares. Faced with large redemption requests, an ETF would not be able to use "shares in companies that invest in loyalty shares" as redemption media. It risks losing its peg to its tracking index. JP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-79144120691808730792016-09-24T03:05:03.959-04:002016-09-24T03:05:03.959-04:00Can't ETF providers buy shares in companies th...Can't ETF providers buy shares in companies that invest in loyalty shares, thus passing on most of the bonus dividend to ETF holders? thetanoreply@blogger.com