Guest nrtflyer Posted September 9, 2003 Share Posted September 9, 2003 Saw on another forum that the stocks are off the TSE (delisted). Is this true and if so, what are the consequences? Maybe Dagger can help. Link to comment Share on other sites More sharing options...
Innuendo Posted September 9, 2003 Share Posted September 9, 2003 Are you sure AC is delisted? Globeinvestor.com says that AC and Stelco are removed from the Key index but they did not mention delisted. Link to comment Share on other sites More sharing options...
Maverick Posted September 9, 2003 Share Posted September 9, 2003 Still there.... http://www.tse.com/HttpController?GetPage=QuotesViewPage&DetailedView=DetailedPrices&Language=en&QuoteSymbol_1=AC Link to comment Share on other sites More sharing options...
Guest nrtflyer Posted September 9, 2003 Share Posted September 9, 2003 Sorry but the market is not my strong point. Being removed from the key index still sounds serious. Does this mean that it will be easier for foreign money to invest in AC? Link to comment Share on other sites More sharing options...
dagger Posted September 9, 2003 Share Posted September 9, 2003 It has no consequence whatsoever. The stock has been removed from a basket of stocks from which a key market index is generated. When it ceases trading altogether on the TSE, that would have consequences for those still holding the paper. Link to comment Share on other sites More sharing options...
Guest pilotforhire Posted September 9, 2003 Share Posted September 9, 2003 Index funds will be forced to sell (they must duplicate the TSE index which no longer will include AC stocks) which could create downward pressure on the price. Link to comment Share on other sites More sharing options...
dagger Posted September 9, 2003 Share Posted September 9, 2003 Do you seriously believe there is a institutional fund left on the planet that holds AC stock? Maybe a vulture fund, but they aren't index driven. Link to comment Share on other sites More sharing options...
Guest pilotforhire Posted September 9, 2003 Share Posted September 9, 2003 I thought that an index fund had to duplicate the index it follows. Hence if Air Canada was in the index it was in their portfolio. Royal Bank still had shares in AC at July 31/03 according to their prospectus for their Canadian index fund. Just my understanding of how an index fund worked. The portfolio manager just adjusts holdings based on the current index, and that is why the management fees are lower. Maybe there is some discretion to holdings when companies are obviously in trouble. There was commentary on the effects of Stelco and AC being dumped from the TSX yesterday morning on CBC radio and they were discussing the effects of the removal and one of them was that index funds would be forced to remove them from their portfolios. But as we all know.....don't always believe what you hear!! Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.