Rights quesion - if nothing is done(no sell / buy) what happens?
I see in my TD account 159 shares of BCS.RT. and 636 shares of BCS common stock. IF I do not do anyting with the BCS.RT.. what happens to those shares? Do they get rolled into the BCS common stock shares?
The rights will expire worthless. You have to either sell the rights or exercise the rights and purchase the 159 shares at around 11.75 dollars a share. Call TD to for answers and to exercise the rights.
I called Ameritrade, they said it will take couple of days to show BCS.RT in the account. Then I will have until October 1st to exercise the right to buy. I will buy. I believe in long term in BCS.
Good luck to all
Go direct to the horse. Go to Barclay's site. Under investor relation, find the rights issue corner, under "your questions answered" link, question 33 answers this: Barclay has made arrangement to find investors to take over un-exercised rights. If they pay a premium (over the exercise price), you will get the premium - expenses.
Basically they will pool all the unexercised rights and sell them to people who want to exercise them. My IRA account has a small number of the rights and etrade wants too much money to exercise it (it sucks). I will let Barclay do it for me instead and see what I can get.
I called TD and asked the same question. I was told that I either sell the rights or put in an order to convert them to BCS shares. If I do not do anything, the rights expire, and you loose the money. Each right is about $5.5 I think. So 159 * $5.50 = $874 you can get by selling the rights.