6 shares purchased - why?

[baldyman27]

I have been following a company that floated on a stock exchange (not ISEQ) about 8 months ago. The share price has fluctuated between 15 and 30 cent per share. I was checking it a while ago and in one day there were 3 trades.One for 25,000 shares and two more, one for 9 shares, the value of which was E1.90, the other for 6 shares, value E1.27. Why did someone do this, given the cost of the transaction. It just doesn't make sense to me, just wondering are there legitimate reasons why this would happen/make sense.

 

[Brendan Burgess]

It might have been to establish a price on a particular day for a tax driven transaction?

Brendan

 

[MandaC]

My thinking for this would be as per Brendan's.

 

[Complainer]

Is there a dividend reinvestment scheme that provides shares to existing shareholders in lieu of dividends?

 

[baldyman27]

Is there a dividend reinvestment scheme that provides shares to existing shareholders in lieu of dividends?

Not that I'm aware of. Establishing a price would make sense alright.Thanks for clearing that up.

 

[Ravima]

It could also be the remnamt of an order. If someone put in an order for €x of shares, then if 100% of the x could not be bought the first time round, the odd few might be bought later. Ot indeed it could be the remnant of a sell order, or sale by executor.

 

[baldyman27]

It could also be the remnamt of an order. If someone put in an order for €x of shares, then if 100% of the x could not be bought the first time round, the odd few might be bought later. Ot indeed it could be the remnant of a sell order, or sale by executor.

Its a fairly new company and I know a shareholder with other vested interests and seemingly there's no shaortage of stock available (hope this makes sense!). Also, the 25000 shares were purchased between the purchases of 6 and 9 shares.The last transaction prior to the 6 shares were about 10 days previous, so i'm inclined to think it was for testing the waters as suggested.

Thanks all.