SHARES that is...not price per share....
BAC shares are plummeting as I write this, down 90cents on the day or 4.56%, on news that they'll increase the authorized number of common shares to 11.3billion from 10billion...much of which will be thanks to the conversion of the government's stake into 1.28 billion new shares.
As of now there's 8.65billion shares, so the government's conversion into equity necessitates the authorization to increase total shares.
As assets crumble, the only thing ahead for banks is
-Lower Return ON that Equity
-More shares outstanding to split that return among.
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