LennyMac7 Mar 2016 09:43
That's one of those questions your probably better googling . Many reasons ,arguably mostly psychological . In the case of RBS the main reason given out by the company was to reduce volatility , media speculation was that it took it out of the penny share bracket ,as mailman said , truth be told it was too big a company to ever be classed as a penny share , it's not just about price . From memory , the main reason and this is speculation on my part , was that the SP was getting dangerously close to the nominal value . If the SP drops below the nominal value it stops a company from issuing new shares ......I think , lol.