PR,RS... Who are they ?
You might see them in articles, or simply into facebook investment groups. It might be confusing as investors use it a lot without explaining what’s the meaning.
Money,eh? will help you to decrypt all these terms.
SP: this abreviation is simply used for the Share Price.
NR: it stands for NewsRelease, or when a company makes a public announcement. Investors crave it as it brings transparency to the company they invested in, and enables investors to act in consequences. A PR can have a good or bad impact on the SP.
Stock Halted: A stock is halted as a security by the IIROC when a big move is about to be made by a company. It could be either a PP, a purchase…
A stock can also be halted when something is anormal in the market. The IIROC will intervene to make sure everything is okay.
PP: it is the meaning for Private Placement. A Private Placement is usually done by investment funds when a Company needs cash to operate, to expand.
It is positive as it means investment funds are interested in a company and believe in the future. It also creates a new bottom, The negative point is a PP is usually done under the current SP, generally lowers the SP and brings dilution.
Dilution: this terms means the float ( the number of shares available on the open market) will be diluted, and resulting to more shares on the open market.
Don’t forget a small float is better than a big float if you want to see great moves.
Insider buying shares: it is positive as investors consider insiders are positive about the future of the company. It has nothing to do with the company, it is done individually.
Stock Split: companies can lower the trading price of their stock to a range deemed comfortable by most investors and increase the liquidity of the shares. Most investors are more comfortable purchasing, say, 100 shares of $10 stock as opposed to 10 shares of $100 stock.
Reverse Stock Split: it usually happens when a company wants to reduce their float or reach a certain index. The most common is when companies want to reach the NASDAQ as the SP required is usually $3.
Example: Money,eh?’s SP is currently $0.50. to reach the requirement, they will have to do a 6:1, meaning they will transform 6 shares into 1 share to reach $3.
In both cases, you won’t win or lose money during the reverse or split. Just your number of shares will be affected.
That’s it ! We hope the conversations will be less blurry now when you will talk with investors.