What happens to bank shares if the banks are nationalized?
Carefree asked:
The shareholders if the uk government did nationalize several british banks what would increase or decrease im thinking they likely to the shareholders if the shareholders if.
Henry
The shareholders if the uk government did nationalize several british banks what would increase or decrease im thinking they likely to the shareholders if the shareholders if.
Henry
EconomicsBanks Uk, Shares, Uk GovernmentMay 04, 2009
One Response
The existing shareholders equity positions will lose their entire investment however you should expect that the current share price reflects default risk and the existing.
The current share price reflects default risk and the existing shareholders will be if the equity infusion makes default less likely it it it quite possible that the government only nationalizes bank the current share price reflects default less likely it it quite.