Look at the price of MSM:
30-7-2012 | 12131 | 5.030 |
27-7-2012 | 7945 | 5.100 |
26-7-2012 | 10450 | 5.150 |
25-7-2012 | 8130 | 5.150 |
24-7-2012 | 14050 | 5.190 |
23-7-2012 | 5530 | 5.200 |
20-7-2012 | 729 | 5.200 |
19-7-2012 | 911 | 5.210 |
18-7-2012 | 229 | 5.200 |
MSM ex date 2012 - 07 - 31
Conversion RM 4.50
If based on closing price:
5.19 + 5.15+5.15+5.10+5.03 / 5 = 5.124 ( 5 days average price)
Ratio is 5 to 1
0.125*5 = 0.625
0.625+ 4.50 = 5.125
Basically you get back nothing if you buy at 0.125
Clever.