Dividend reinvestment12 Jul 2021 15:14
Let’s say I’m a fat, ugly market maker.
Maiden dividend due Aug 6th.
Payout is approx £1.5m and a lot of that will be reinvested (I have a good idea how much from the retail brokers, txs guys). Therefore, need to find about 6 million shares.
So let’s crash the SP on the acquisition and load up on cheap shares - tee hee (“shhhh…. They’re going for it …ppffff”).
Okay, now slowly raise the price back up to Aug 6th, loads of time to do this, and collect the profit from the automatic purchases.
Luuuuurvly.