The reason provided by Pimco was this was just corrected for dividends "you're ok". Does someone know what this means and am I ok?
2006-12-30 03:47:43 · 2 answers · asked by Supra1Q 4 in Business & Finance ➔ Investing
Once my mutual fund dropped 9% because of the same thing. I think its that they paid out cash to the stock holders, of which you're one. So you didn't lose any value, they just liquidated it and gave it to you. In my case, the cash was automatically reinvested in the fund and so i lost 9% of the per-share value, but gained 9% in the number of shares I held. The total value stayed the same.
2006-12-30 04:06:20 · answer #1 · answered by Neebler 5 · 0⤊ 0⤋
That is indeed the most likely explanation....if you can check your account on-line, you should see more shares posted in the next couple of days....they will be at the new lower price, but your balance should be pretty close to even.
Having more shares means your account will make more money, faster. (when you see gains ) and if you are doing your own accounting( say on a yahoo portfolio) you can adjust your share price downward...you just got X number of share for 0 cost.
Say you used to have 610 shares that cost you $4000. ( $6.55 a share)...and now you have 690 shares but they still only cost you $4000. ($5.79 a share)
This is only necessary if you want to really know your gain "percentage-wise" over a period of years.
Soooo... you ARE okay.. and you could consider yourself a little better off if you really want to !! Good luck
2006-12-30 06:08:23 · answer #2 · answered by jebediabartlett 6 · 0⤊ 0⤋