HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
I really can't see how implementing a delist commission this will result in smarter trades,
and furthermore, I think the outcome will result in a lot more bad trades. Here is an example:
You are maxed long on RAPUN . Before the cash-out last night, the stock was trading about 126/share, which was 1.5% lower than the actual delist price (127.92/share). What are your options now?
If you want to sell before cash-out, and avoid the 1% delist fee, you have to sell at 126, and lose an additional 1% because of the trade commission. Total loss would be 2.5% from where the stock would delist commission free.
If you do nothing and keep the shares, you lose 1.5% from where the stock would delist commission free, plus you lose another 1% because of the delist commission. Total loss is 2.5%.
If you want to buy and grab the 1.5% arb before it delists, the final trade will result in a 0.5% loss (1.5% arb - 1% from trading - 1% from delist commission).
This is a lose - lose situation all around, and since 1% for a RAPUN max position is $95K, so you would lose anywhere btw 47K - 237K. I don't see how this would benefit the game overall.
Do others see it differently ?
In my initial reaction below, I forgot that funds "delist" and charging a commission for them on the way out is ridiculous. Dec 21, 10:11
The Bucket List ...STVs ...Dead Delists ...RIPs? Dec 21, 12:17
Where was it announced that RIP Starbond delists are at current price? I thought they delisted at TAG. {nm} Dec 22, 00:06
They lost that Saturday trading business by getting rid of comm-free. {nm} Dec 21, 18:18
But you are using that cash to buy something else for the 3rd trade. {nm} Dec 21, 12:50
(and I sometimes forget that perspective) {nm} Dec 21, 13:10
Assuming something good is there because if most oportunities are close to (maturity + comission) then is better to keep it . Dec 21, 13:31
delist should be commission free and hsx should reduce commission % overall. this would be an incentive to trade. {nm} Dec 21, 13:11
We want you to be making choices and the resulting smarter trades. {nm} Dec 21, 13:16
You are forcing traders to be daytraders. You are tunelling everybody into doing the same thing. Dec 21, 13:45
No, you don't have to necessarily be smart or good to follow movement of stocks on a ticker. {nm} Dec 21, 18:17
Obiously I don't mean that. Dec 21, 20:00
Yes but In that point I will say it will depend in your port size rather than the 100K, the new delist "tax" will affect that. Dec 22, 06:20
I agree with that completely and am all for it. {nm} May 16, 22:50
I think they should bring back the cold cash option {nm} May 16, 22:52
I really can't see how implementing a delist commission this will result in smarter trades, Dec 21, 13:59
Example 2 ( Do nothing) seems off but you got the idea, stocks close to maturity price become less profitable. {nm} Dec 21, 14:24
Yeah, you are correct... after delist, you end up with a gain of only 0.5% (instead of 1.5% as of now). {nm} Dec 21, 14:55
I do agree on that Dec 21, 20:25