SteveT
Member of DD Central
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Post by SteveT on Oct 12, 2018 5:18:34 GMT
“Loss relief allows an investor to offset a loss made on an EIS company against either their capital gains tax bill or their income tax bill, depending on which better suits their individual needs. They can claim loss relief either in the tax year when they realise the loss or the following tax year.” “If shares in an EIS-qualifying company fall in value to zero, in certain circumstances investors may have the option of making a negligible value claim, by informing HM Revenue & Customs that the shares are worth nothing or next to nothing, even if they haven’t been sold.” octopusinvestments.com/investor/investor-centre/document-library/octopus-eis-guide-to-loss-relief/ |
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Post by jessicaking on Apr 2, 2019 8:06:44 GMT
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pence
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Post by pence on Oct 5, 2020 10:41:31 GMT
I am using Seedrs Secondary Market for the first time today to sell shares. Lets say I have £5,000 worth of shares to sell. Do I see that correct that if someone wants to buy e.g. £1,000 worth of shares he could not by my shares unless I split up my sell orders into smaller chunks ? So e.g. I would need to sell lots like below which add up to £5000. For larger amounts this would even be a bigger pain. £1000 £1000 £1000 £500 £500 £250 £100 £100 £50 £50 £10 £10 £10 £10 £10 Also I would need to reajust these amounts once a few lots sold.
There also seems to be no queue per sellprice. So it looks like a buyer has to specifially pick my lot - instead of he just gets assigned the shares at the top of the queue. If my unserstanding is correct than this secondary market has massive design flaws.
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daveb
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Post by daveb on Oct 5, 2020 11:07:55 GMT
My understanding was that yes you divvy up your shares into amounts that you think might sell, and then purchasers pick what they want. When I last sold there was no variable pricing so the only thing anyone would have taken into account was whether the block of shares was what they wanted. I wasn't aware of any sort of queue or algorithm to say which were purchased if both you and I listed the same size parcel of the same shares, I assumed it was just random what the purchaser picked.
There is a chat function on seedrs which might be worth using.
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Post by wiseclerk on Oct 5, 2020 11:32:18 GMT
Yes it is advisable to divide a large share holding into smaller chunks if you want to sell.
The buyer can just pick a share lot from a sortable list if he wants to buy. So no queue or algorithm. You can see how it looks for the buyer yourself under Invest > Secondary Market and then click any of the companies.
This is due to limitations imposed by regulation. It is now bulletin board style. Running a sophisticated stock exchange requires additional licenses.
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pence
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Post by pence on Oct 5, 2020 14:31:50 GMT
Thank you daveb and wiseclerk for this clarification.
So at Seedrs if a seller is selling 200 shares of a company for some price in one lot but a buyer only wants to buy 100 shares of that company at that price then there is no deal - it's rediculous. And regulation is preventing Seedrs from implementing something better ?
Back in the days when I was investing in P2P platforms Ratesetter had a proper way to invest money at different interest rates.
Also Lendy had a secondary market that had queues and "auto splitup" of larger loans if the buyer wants to buy a smaler amount.
I made the mistake to invest a larger amount with Seedrs. This will take a lot of unecessary manual work to sell.
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Post by newlender on Oct 5, 2020 14:50:02 GMT
Do you have anything in Commuter Club? (There are £152K of shares waiting to be sold from tomorrow). I'd like to know what % of the shares on offer each month are actually sold; I have bought a few times but never tried to sell yet. The companies that look good are usually offered at a premium by hopeful sellers so if you want to pick up something at the base price you have to get in early in the cycle.
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daveb
Member of DD Central
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Post by daveb on Oct 5, 2020 15:14:09 GMT
Thank you daveb and wiseclerk for this clarification.
So at Seedrs if a seller is selling 200 shares of a company for some price in one lot but a buyer only wants to buy 100 shares of that company at that price then there is no deal - it's rediculous. And regulation is preventing Seedrs from implementing something better ?
Back in the days when I was investing in P2P platforms Ratesetter had a proper way to invest money at different interest rates.
Also Lendy had a secondary market that had queues and "auto splitup" of larger loans if the buyer wants to buy a smaler amount.
I made the mistake to invest a larger amount with Seedrs. This will take a lot of unecessary manual work to sell.
It's only a problem if you're in a hurry to sell, and perhaps unquoted equities aren't the place for money you need in a hurry. IMV it's great to have any sort of secondary market, and the stuff I sold I didn't find too taxing to put into chunks of a suitable size.
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Post by newlender on Oct 6, 2020 9:07:58 GMT
Can anyone explain why a share price (as calculated by Seedrs) does not fall when there is a massive desire to sell on the Secondary Market? I suppose you could say that a 30% discount on the share price when offered today is a de facto price fall. But some hopefuls are still expecting the full whack when it is clear that they stand absolutely no chance.
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daveb
Member of DD Central
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Post by daveb on Oct 6, 2020 9:37:42 GMT
Can anyone explain why a share price (as calculated by Seedrs) does not fall when there is a massive desire to sell on the Secondary Market? I suppose you could say that a 30% discount on the share price when offered today is a de facto price fall. But some hopefuls are still expecting the full whack when it is clear that they stand absolutely no chance. I suppose because no-one has much of an idea what unlisted equities are worth. One of the ways you can get into trouble is by believing the valuation. If each funding round goes at a higher price it looks like a great investment, until it doesn't. I suspect a lot of the sales are not because the vendors have any particular fear for the company, but reflect a desire to take some profit at the end of the 3 year lock in for tax refunds.
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Post by newlender on Oct 6, 2020 10:01:02 GMT
I suppose that the 30% lower/upper limit means that some shares on the market are unrealistically priced by quite a big margin. I would happily sell one of my awful ones at an 80% discount and buy (smallish) lots of some of my promising ones at a 50% premium, as I think I've spotted two that, while never becoming unicorns (or even 'unifoals'), will be doing very well in 5-10 years.
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pence
Posts: 46
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Post by pence on Oct 6, 2020 10:25:49 GMT
Do you have anything in Commuter Club? (There are £152K of shares waiting to be sold from tomorrow). I'd like to know what % of the shares on offer each month are actually sold; I have bought a few times but never tried to sell yet. The companies that look good are usually offered at a premium by hopeful sellers so if you want to pick up something at the base price you have to get in early in the cycle. I dont have any shares in commuter club but I just noticed that there is a filter at the top of the "market table" which lets you choose "sold". Then you see all sold lots.
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Post by newlender on Oct 6, 2020 11:01:22 GMT
Yes. 2 sold at a 30% discount. I've just bought some shares in one of my favourites at the current price. Most of the remaining offers are at a premium, so I'm quite chuffed. Actually, my purchase reinforces one of the points made above. The remaining lot at the current price costs >£2k and I can't afford that. But I'd be in for half if that were on offer. I have set a limit for my holding of those shares that I think look good so in any case the amount of shares would also breach that, so no deal done.
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Post by wiseclerk on Oct 6, 2020 12:48:15 GMT
Do you have anything in Commuter Club? (There are £152K of shares waiting to be sold from tomorrow). I'd like to know what % of the shares on offer each month are actually sold; I have bought a few times but never tried to sell yet. The companies that look good are usually offered at a premium by hopeful sellers so if you want to pick up something at the base price you have to get in early in the cycle. Just look when the trading week is open (now) and you can see which are on offer and which are sold. Currently only 2 small lots of Commuter Club had sold at -30% I have Commuter Club shares. The startup developed well in the past, but struggles in context of COVID 19 situation
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Post by wiseclerk on Oct 6, 2020 12:49:58 GMT
Can anyone explain why a share price (as calculated by Seedrs) does not fall when there is a massive desire to sell on the Secondary Market? I suppose you could say that a 30% discount on the share price when offered today is a de facto price fall. But some hopefuls are still expecting the full whack when it is clear that they stand absolutely no chance. reading this and this
will help you understand.
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