jump to navigation

A sign of the times March 24, 2009

Posted by fetzthechemist in Uncategorized.
trackback

One of the stocks I have is that of an insurance company. It was never bought. The life insurance policy I have had for years and years was bought from a mutual company – a dinosaur in these days, but common then. The policyholders essentually owned the company through their paying premiums and getting dividends.

The company went public a few years back and diversified into the full financial world allowed by deregulation (that story is another one and not a happy one, AIG is the big example of things gone awry because insurers are not bankers and lack of constraints led to a totally stupid virtual money system.) When they went public, policyholders got stock.

That stock has plummeted to below a dollar a share. So now the board of directors want approval to have reverse stock splits – why couldn’t they call them something more straightforward like stock coalescing or combining?. Anyway, the boom had stocks soaring and splitting like crazy. This bust has the reverse.

Advertisements

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: