The Ghana Stock Exchange (GSE) Council is expected to take a decision on whether share prices should be quoted to four or two decimal places.
At a meeting in Accra recently, involving GSE officials and the brokers, no decision to choose one of the two options was reached. The final decision must be made before the end of June.
However, in an interview with BusinessWeek, Philip Abodoh of First Atlantic Brokerage indicated that trading to two decimal places means there would be changes in value, in which investors would lose huge sums of their investment.
He cited, as an instance, the share price of Super Paper, which trades at ¢225 and when the new cedi is introduced will become 2.25 pesewas, thus causing investors to lose the 0.25 pesewas.
He noted however, that trading to four decimal places means that the losses in old currency and the gain in new cedis will be the same, and there will not be changes in value.
According to him, trading to four decimal places in the new cedi, the Super Paper share will be quoted at 0.0225 Ghana cedis, which means that there will be no drop in any figure.
He said the final decision by the Council would erase any doubts in investors’ mind.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
Latest Stories
-
‘Ghana’s education sector is in crisis’ – President-Elect Mahama calls for national forum
5 minutes -
Ghanaian movies released in 2024
10 minutes -
Another deadly crush in Nigeria at event offering free food
17 minutes -
Cyclone Chido kills 94 people in Mozambique
26 minutes -
How tactless NDC exonerated the Electoral Commission
42 minutes -
Tiger Woods’ son Charlie, 15, hits first hole-in-one
49 minutes -
‘¢25m is just a drop in the ocean’ – WAEC on delayed results
54 minutes -
NPP’s Central Regional Chair, Robert Kutin dead
60 minutes -
Global Football Festival promises football museum and music experience on December 27
1 hour -
Saudi warnings about market attack suspect were ignored
1 hour -
Trump threatens to try to regain control of Panama Canal
1 hour -
Court orders police to determine gender of accused
1 hour -
Ghana’s gold production to rise marginally by 3% in 2025 – Deloitte
1 hour -
A man’s suicide leads to clamour around India’s dowry law
1 hour -
Asante Gold Corporation enters into $500m agreement with Fujairah Holdings LLC
1 hour