PLC shares


J

JL

[just a simple understanding issue]


If I sell some shares in a plc - who then owns those shares at the point of
sale?

Presumably not the broker?


Example - I sell 100 shares at £1 each via a broker.
Who (or what) has title to the £100 asset (assuming that asset has not yet
been sold on)?

Thank you.
 
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P

PeterSaxton

[just a simple understanding issue]

If I sell some shares in a plc - who then owns those shares at the point of
sale?
Is this a philosophical question?
Presumably not the broker?
Not the broker
Example - I sell 100 shares at £1 each via a broker.
Who (or what) has title to the £100 asset (assuming that asset has not yet
been sold on)?

Thank you.
You do until it is sold and then the title is transferred to the buyer
 
J

JL

[just a simple understanding issue]

If I sell some shares in a plc - who then owns those shares at the point
of
sale?
Is this a philosophical question?

Mostly yes ;-)
but please read on... because my question remains ...

Not the broker

OK



You do until it is sold and then the title is transferred to the buyer.


So are you saying that the broker will have already entered into a contract
with a purchaser, for the disposal of my shares, before crediting me?



Thanks for helping me to understand this.
 
T

Troy Steadman

[just a simple understanding issue]
If I sell some shares in a plc - who then owns those shares at the point
of
sale?
Is this a philosophical question?
Mostly yes ;-)
but please read on... because my question remains ...
Not the broker
OK
You do until it is sold and then the title is transferred to the buyer.
So are you saying that the broker will have already entered into a contract
with a purchaser, for the disposal of my shares, before crediting me?

Thanks for helping me to understand this.
The broker is an agent. He works on a commission and never gets
anywhere near to the title.

There will be a point in every contract at which the title passes and
the contract is irrevocable. You should read Contract Law because it
is interesting:

Someone offers to sell me a valuable antique and I reply by post
accepting it. While the letter is in the post, and before it reaches
the seller, I die.

Did I buy the antique?

:)
 
P

PeterSaxton

[just a simple understanding issue]
If I sell some shares in a plc - who then owns those shares at the point
of
sale?
Is this a philosophical question?
Mostly yes ;-)
but please read on... because my question remains ...
Not the broker
OK
You do until it is sold and then the title is transferred to the buyer.
So are you saying that the broker will have already entered into a contract
with a purchaser, for the disposal of my shares, before crediting me?

Thanks for helping me to understand this.
The broker finds someone to buy what you are selling so "yes".
 
J

JL

[just a simple understanding issue]
If I sell some shares in a plc - who then owns those shares at the
point
of
sale?
Is this a philosophical question?
Mostly yes ;-)
but please read on... because my question remains ...
Not the broker
OK
You do until it is sold and then the title is transferred to the buyer.
So are you saying that the broker will have already entered into a
contract
with a purchaser, for the disposal of my shares, before crediting me?
The broker finds someone to buy what you are selling so "yes".


Does the broker do this before paying me and subsequent transfer of title?

Are we nearing resolution to my original question ? <smile>
 
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J

JL

[just a simple understanding issue]
If I sell some shares in a plc - who then owns those shares at the
point
of
sale?
Is this a philosophical question?
Mostly yes ;-)
but please read on... because my question remains ...
Not the broker
OK
You do until it is sold and then the title is transferred to the buyer.
So are you saying that the broker will have already entered into a
contract
with a purchaser, for the disposal of my shares, before crediting me?

Thanks for helping me to understand this.
The broker is an agent. He works on a commission and never gets
anywhere near to the title.


I know that bit <grins>

There will be a point in every contract at which the title passes and
the contract is irrevocable. You should read Contract Law because it
is interesting:

Agreed - though (in this context) lets presume I don't have time to do this.
I asked a simple question, no?


Someone offers to sell me a valuable antique and I reply by post
accepting it. While the letter is in the post, and before it reaches
the seller, I die.

Did I buy the antique?

:)

And your solution is ???

;-))
 
R

Ronald Raygun

Troy said:
There will be a point in every contract at which the title passes and
the contract is irrevocable. You should read Contract Law because it
is interesting:

Someone offers to sell me a valuable antique and I reply by post
accepting it. While the letter is in the post, and before it reaches
the seller, I die.

Did I buy the antique?

:)
Interesting indeed.

It would depend on how contract law defines acceptance. Is it
*declaring* acceptance, or is it making the offeror aware of the
acceptance?

My intuition tells me (but it as let me down before) that it is
the former. So I would say yes, you did buy it, because you
accepted the offer before you died. The fact that the seller
doesn't yet know you accepted it until the letter reaches him is
neither here nor there.

Suppose instead of dying, you just changed your mind. If you
wrote another letter, withdrawing your acceptance, and posted it,
it would probably reach the seller after your acceptance letter.
It would presumably be ineffective. You could try to contact
the seller by a quicker means than post, to tell him please to
disregard the acceptance he is about to receive. But that would
be no more than request, and I expect that the seller (if he were
desperate enough not to lose the sale) could refuse the request
and insist that the written acceptance should stand.

Yes, interesting. What's the official answer?
 
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T

Troy Steadman

Interesting indeed.

It would depend on how contract law defines acceptance. Is it
*declaring* acceptance, or is it making the offeror aware of the
acceptance?

My intuition tells me (but it as let me down before) that it is
the former. So I would say yes, you did buy it, because you
accepted the offer before you died. The fact that the seller
doesn't yet know you accepted it until the letter reaches him is
neither here nor there.

Suppose instead of dying, you just changed your mind. If you
wrote another letter, withdrawing your acceptance, and posted it,
it would probably reach the seller after your acceptance letter.
It would presumably be ineffective. You could try to contact
the seller by a quicker means than post, to tell him please to
disregard the acceptance he is about to receive. But that would
be no more than request, and I expect that the seller (if he were
desperate enough not to lose the sale) could refuse the request
and insist that the written acceptance should stand.

Yes, interesting. What's the official answer?
I can't find the actual case I was thinking of, where the acceptor
actually *did* die, but you are right and the contract was sealed when
the acceptance was posted into a pillar-box.

This is your case:

http://en.wikipedia.org/wiki/Henthorn_v._Fraser

This seems to be a good brief summary of contract law with plenty of
cases to Google:

http://www.cwgsy.net/private/sljohn/Contract.html
 

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