The government has stated that, despite the suspension of Northern Rock PLC shares from listing and market trading, people are allowed to trade in bilateral off market or over the counter trades.
The current spread, apparently, is a ludicrous 25p-24p. This is of course absurd, given that the likely "value" of Northern Rock shares is in fact 5p or less.
However, the government, quite correctly, also warned that such trades wouldn't be entitled to claim compensation.
A statement issued by the Treasury said:
"Persons dealing in shares of Northern Rock, or instruments referenced to such shares do so entirely at their own risk."
Fair enough.
However, the question is, why are the shares still suspended?
Wouldn't it be better to allow them to be traded, and thus offer shareholders a chance to pull out now?
Indeed, wouldn't this afford the government a way of "valuing" the bank?
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