Disbursement of Securities Post COAC
Bonus shares and temporary transferable certificates are usually valued highest on the Ex-Date and then the price tends to slowly fall over the following days.
Owners of parent shares not loaned (on an SFT) can sell their bonus shares on Ex-date and to settle when the shares are received on payment date.
SFT borrowers are unable to sell until payment date as they will not hold the bonus shares until this time.
SFT borrowers will therefore miss the opportunity to sell at the unusual optimal market price achieved on an ex-date sale.
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