Author Topic: [ELI5] Rights offering? from employer  (Read 763 times)

boulder3381

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[ELI5] Rights offering? from employer
« on: November 10, 2019, 07:51:00 PM »
I work for DISH Network.  Which has announced a rights offering  http://about.dish.com/2019-11-07-DISH-Network-Announces-Rights-Offering


The subscription rights will entitle the holder to acquire newly-issued shares of DISH's Class A common stock. The subscription price will be $33.52 per share of Class A common stock. </quote>

  • Given I have Class A stock, I can purchase up to the same quantity for $33.52? 
  • How do I tell if have class A stock? 
  • What about my index funds? 
  • And how do I go about purchasing said stock at the given price if I wanted to (any brokerage)?
« Last Edit: November 11, 2019, 09:03:43 AM by boulder3381 »

TomTX

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Re: [ETMLi5] Rights offering? from employer
« Reply #1 on: November 11, 2019, 05:43:43 AM »
Doubling down on your employer risk is dumb. Your questions indicate you have no idea WTF you are doing with stock investments.

MOD EDIT: This seems unnecessary, especially with a new user asking a novice question.

What happens if DISH goes under? You lose both your job and your investments.

Stay away from individual stocks. Invest in a low-cost, broad-based index fund or ETF.

VTI is a great benchmark.

The acronym you should have used is ELI5.
« Last Edit: November 13, 2019, 07:32:47 AM by FrugalToque »

boulder3381

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Re: [ELI5] Rights offering? from employer
« Reply #2 on: November 11, 2019, 09:07:25 AM »
@TomTX thanks for providing me a correction for my misuse of the acronym ELI5. 

 I do appreciate your concern for my choices, however I was simply requesting information about my options. And it seems that you were not able to fulfill my inquiry.

I hope someone else from this community that is more informed can answer my original questions.
« Last Edit: November 11, 2019, 09:09:59 AM by boulder3381 »

TomTX

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Re: [ELI5] Rights offering? from employer
« Reply #3 on: November 11, 2019, 12:27:50 PM »
Lemme try again:

This is a bad plan. Don't do it.

Random example:

https://forum.mrmoneymustache.com/investor-alley/top-is-in/msg2495310/#msg2495310
« Last Edit: November 11, 2019, 12:31:07 PM by TomTX »

Lucky Penny Acres

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Re: [ELI5] Rights offering? from employer
« Reply #4 on: November 11, 2019, 12:40:32 PM »

You should be able to check with your brokerage about whether or not you currently hold Class A shares directly.  It should be on your account statement somewhere, or there might be a list of a CUSIP for the shares, which is often unique per share class.

From a brief skim, looks like there are Class A and Class B shares outstanding currently. 100% of the Class B shares are held by a single person - which presumably isn't you.  Therefore, most likely, if you hold direct shares, you hold Class A shares.

The offering provides that each share is entitled to buy a new Class A share at $33.52. If you don't buy that new share, you will be diluted because someone else will buy that share in your place.  If you have 100 Class A shares now, you can buy 100 more class A shares.

Usually you can exercise your rights to buy the shares through the broker where you hold your current class A shares.  Typically your brokerage would send you the notice and there would be more detailed information about how you can exercise your rights to buy more.

For any shares of DISH held through an index fund, you don't own those directly - the index fund owns those shares. The index fund gets to decide whether or not to buy additional shares - you don't get to decide what the index fund chooses.

boulder3381

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Re: [ELI5] Rights offering? from employer
« Reply #5 on: November 11, 2019, 06:45:22 PM »
@Lucky Penny Acres thanks for the explanation

@TomTX ...  thanks again. 

Let me apologize in my early morning fog, I did miss the overt insult you offered me stating that I have "no idea WTF [ I am ] doing with stock investments."  Whether this is true or not, your comments didn't change my ability to be informed.

Doubling down on your employer risk is dumb. Your questions indicate you have no idea WTF you are doing with stock investments.

What happens if DISH goes under? You lose both your job and your investments.

Stay away from individual stocks. Invest in a low-cost, broad-based index fund or ETF.

VTI is a great benchmark.

The acronym you should have used is ELI5.



Likewise, I'm not certain how you jumped from reading my questions to assuming I had a plan to purchase individual stocks of a company.  Financial action w/o a strategy and knowledge seems as silly as replying to a post without comprehension.


Lemme try again:

This is a bad plan. Don't do it.

Random example:

https://forum.mrmoneymustache.com/investor-alley/top-is-in/msg2495310/#msg2495310

ps... I did like the random thread you offered. Your generosity, while at times misplaced, abounds.
« Last Edit: November 11, 2019, 06:56:43 PM by boulder3381 »