The cost of securities of one of the most famous gold exchange-traded funds FinEx Gold today collapsed by about ten times, drew attention. At 12:05 p.m. in ruble terms, their price was approximately 93 rubles, and in dollar terms - $1.2.
In this case, a split could occur: each share was divided into several parts in order to make their price more affordable for investors, explained Vitaly Gromadin, asset manager at BCS Mir Investments.
“There is nothing unusual here, it looks like a 10 to 1 split of shares. This means that each share was divided by 10 so that the price of one share, for example, was not 920, but 92 rubles. At the same time, the cost of the fund and the share of each shareholder remained unchanged,” the expert explained.
The share split is being carried out in order to increase the availability of this fund for investment, he added.
“In a stock split, as in the case of the FinEx ETF, the price of one share will be not $10, but $1. Accordingly, an investor does not have to invest all $10 to get exposure to gold, but only $1 is enough,” Vitaly Gromadin specified.
Later, the schedules should come back to normal. When this happens depends on the platform, but usually it happens quite quickly, the expert said. For fund holders, the situation does not change in any way, no additional actions need to be taken.
bbabo.Net