Polar Capital Technology Trust (PCT) this morning announced a proposed 10 for 1 share split. This is designed to assist regular savers and those who are looking to invest smaller amounts, according to the announcement. It is also suggested that this will also make the “each share more affordable to investors”. This is of course complete nonsense.
Changing the nominal price of a share by increasing the shares in issue when the underlying assets don’t change has no impact whatsoever in real terms. This is a smoke and mirrors bit of illusion that no sensible company should have anything to do with.
I will be voting against this proposal with my holding in PCT.
Roger Lawson (Twitter: https://twitter.com/RogerWLawson )
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