Considerable debate on the value of shares after deletion of zeros

[TrinityeXchange]

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BAGHDAD / Baghdadiya News / .. Revealed financial sources that the sensation seemed to escalate since 2008 and so far about the value of stock prices in the Iraqi market for securities that have faced hit hard during the past decades and will direct them blow the largest in the event of reduction of share value to one penny, according to planning the CBI.

At a time in which the central bank to be considered as a date 1/1/2013 to officially start the flow of the new Iraqi dinar after deleting three zeros from him to cash transactions in Iraq, decided to calculate the final value price per share in circulation as of the same date a penny instead of current price is one dinar, and this is what several economists will suffer a major problem of the Iraqi stock market.

And managed agency / Baghdadiya News / get the documents that confirm that the central bank ended a plan replacement and set a date early next year to start trading dinar new will start to delete three zeros from it, the process of printing new categories are 50, 100 and 250 dinars, and last category is equal to quarter of a million current currency and this will be the highest category to facilitate the transactions large in addition to the categories currently in circulation after Trchigaha a five dinars and class ten and twenty-five dinars, and these categories of paper, while the metal is 50, 100, 250 and 500 fils in addition to the BD one, which will be metal, too.

With regard to the prices of stocks and bonds, according to the Central Bank, the find appropriate treatment of the value of stocks that are traded in the Iraqi market for securities, especially since the value of one share is currently one dinar, and will be in the case of deletion of zeros penny, and in this area suggested that the bank set up a committee chaired by a representative of the the Bank and the organelle by the Ministry of Finance and the Ministry of Justice and the Office of Financial Supervision and the Iraqi market for securities to determine the accounting procedures of the crisis in the case of currency exchange and delete three zeros of them in a timely manner and prior to the process of replacement, and may be the idea in the calculation of all (1000) share a dinar again, and that the issue one share instead of all the 1000 shares is the date of issuance of the new currency, or any ideas of the Committee up to it above.

Economic expert, d. Majid picture, between the Agency / Baghdadiya News / What available information, the central bank will instrument currencies of small start than fifty fils ascending order, here are dealing Fils result of major developments in inflation has become a zero exactly, and it was proposed to print ten money surge is that the bank insisted to print 50 fils rise.

With regard to equity between the picture that the stock and accounts, bonds and all the problems that may arise as a result of deletion of zeros must form joint committees of the concerned authorities and also the private sector to solve these problems and the collection of proposals, including some passed to keep the share price one dinar, but the actual value will be fils, the problem that occurred is the low value of the Iraqi currency to stock which was priced dinars in the eighties and then the value of the dinar is equal to $ 3, and surprisingly was kept on its previous value, and here the issue is complex and you need an immediate decision may cause losses of large shareholders may win as well, and here the solution, however, the decision-makers, Although it’s a problem raised since 2008 and has remained so far, but there are solutions, but solutions not agreed upon.

And on the large groups that Top is 250 new dinars, between it would reduce the amount of currency in circulation, especially of deals big and instead of carrying large quantities to make a deal and one is carrying a number of papers of the new, or one sheet of paper because it is equal to a quarter million dinars from the exchange current.

And on the efforts of the bank to raise the value of the dinar, said yes, there are many proposals and the project to delete the zeros ensure that this proposal any time the equation of the value of the dinar per one dollar will be replacement, but there are many issues related to such oil prices and adjustments that must be brought to an end price of the neighboring countries, the issue is the value of the real dinar internally and externally any purchasing power, in the case of force required equation of exchange can walk in this direction, either in the purchasing power will remain high it can not be equated.

And on the value of stocks new between the Executive Director of the Association of Iraqi banks Abdul Aziz Hassoun, “The solution is not to reduce the value of the share, but that the mechanism will be as follows now the value of the stock one dinar, and here the capital as a whole will be re-arranged, for example, capital of the company 100 million, spread over shareholders, the one who owns 10 000 shares will become the owner of one hundred shares, and so on, “

[rightsonword]

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And managed agency / Baghdadiya News / get the documents that confirm that the central bank ended a plan replacement and set a date early next year to start trading dinar new will start to delete three zeros from it, the process of printing new categories are 50, 100 and 250 dinars, and last category is equal to quarter of a million current currency and this will be the highest category to facilitate the transactions large in addition to the categories currently in circulation after Trchigaha a five dinars and class ten and twenty-five dinars, and these categories of paper, while the metal is 50, 100, 250 and 500 fils in addition to the BD one, which will be metal, too.

Is it just me, or is this implying that our our 25,000 note will be equal to a new 250 note? That would mean they are only removing two zeros off the note/exchange rate, implying an RV to .01 USD. I would assume that either the number of shares would be divided as well.

[truthful1]

Is it just me, or is this implying that our our 25,000 note will be equal to a new 250 note? That would mean they are only removing two zeros off the note/exchange rate, implying an RV to .01 USD. I would assume that either the number of shares would be divided as well.

Shares in stocks arent calculated like currency notes. its different. more rd/lop talk...why a new 50 dinar, they already have one.......but this implies to me a new 50 will be equal to $50 or so and the old 50, will become a nickel. no need to keep talking about a new 50 if each dinar will equal a dollar. so the fact they will be running to versions of a 50 dinar note at the same time, is a mega red flag. sure would love the rvers to answer that question.

Edited March 29, 2012 by truthful1

[rightsonword]

Shares in stocks arent calculated like currency notes. its different. more rd/lop talk...why a new 50 dinar, they already have one.......but this implies to me a new 50 will be equal to $50 or so and the old 50, will become a nickel. no need to keep talking about a new 50 if each dinar will equal a dollar. so the fact they will be running to versions of a 50 dinar note at the same time, is a mega red flag. sure would love the rvers to answer that question.

Do you think there will be a reverse stock split regardless of an RV or RD?

Perhaps I'm misunderstanding, but I don't follow how a new 50 will equal $50, while the old 50 will equal .05 USD when it is saying a new 250 will equal an old 25,000. If this is the case, wouldn't the old 50 be worth at least 0.50 USD?

[JayP]

Is it just me, or is this implying that our our 25,000 note will be equal to a new 250 note? That would mean they are only removing two zeros off the note/exchange rate, implying an RV to .01 USD. I would assume that either the number of shares would be divided as well.

Just to clarify this some what they are saying is this:

"the process of printing new categories are 50, 100 and 250 dinars, and last category is equal to quarter of a million current currency and this will be the highest category to facilitate the transactions large"

250 will equal a quarter of a million current curreny which is 250000 dinars. Delete 3 zeros, from 250000 and you have 250.

[en1gma]

Shares in stocks arent calculated like currency notes. its different. more rd/lop talk...why a new 50 dinar, they already have one.......but this implies to me a new 50 will be equal to $50 or so and the old 50, will become a nickel. no need to keep talking about a new 50 if each dinar will equal a dollar. so the fact they will be running to versions of a 50 dinar note at the same time, is a mega red flag. sure would love the rvers to answer that question.

It is my understanding that all the denominations will be new designs as per some agreement. Like how the U.S. has changed the design of its currency in the past, only Iraq is using this design change as an opportunity to get rid of all of their "zeros" to bring their notes into a 'normal' denomination range.

[rightsonword]

Just to clarify this some what they are saying is this:

"the process of printing new categories are 50, 100 and 250 dinars, and last category is equal to quarter of a million current currency and this will be the highest category to facilitate the transactions large"

250 will equal a quarter of a million current curreny which is 250000 dinars. Delete 3 zeros, from 250000 and you have 250.

Ahh, thank you. Totally misread.

[zigmeister]

250,000 dinar? I love it when these articles are clear as mud. Thanks Trinity. What is your take on this?

[truthful1]

Do you think there will be a reverse stock split regardless of an RV or RD?

Perhaps I'm misunderstanding, but I don't follow how a new 50 will equal $50, while the old 50 will equal .05 USD when it is saying a new 250 will equal an old 25,000. If this is the case, wouldn't the old 50 be worth at least 0.50 USD?

Honestly id dont know what or how they will do it. it seems theyre still deciding on it. sorry i dont have an answer

[TrinityeXchange]

250,000 dinar? I love it when these articles are clear as mud. Thanks Trinity. What is your take on this?

I am still digesting this article Zigmeister. I've read multiple trains of thought on this but have not come to my own conclusion yet. I will post my opinion a bit later. Thanks for asking my friend.

What do you gather from this?

[zigmeister]

I am still digesting this article Zigmeister. I've read multiple trains of thought on this but have not come to my own conclusion yet. I will post my opinion a bit later. Thanks for asking my friend.

What do you gather from this?

This--->And managed agency / Baghdadiya News / get the documents that confirm that the central bank ended a plan replacement and set a date early next year to start trading dinar new will start to delete three zeros from it, the process of printing new categories are 50, 100 and 250 dinars, and last category is equal to quarter of a million current currency and this will be the highest category to facilitate the transactions large in addition to the categories currently in circulation after Trchigaha a five dinars and class ten and twenty-five dinars, and these categories of paper, while the metal is 50, 100, 250 and 500 fils in addition to the BD one, which will be metal, too.

Makes no sense to me at all! They already have 50,100, and 250 and the last category is equal to quarter of a million which would be 250,000.

Actually I can't make sense out of this article at all.

[coldwarvet]

Maybe the nonsensical nature of the article is deliberate. When you can't convince them with the facts, baffle them with bovine excrement.

[dvforumuser]

What is there to debate? A stock now selling for 1 IQD will after the RD sell for 1 new-dinar fil. Its value is unchanged. Note everywhere in the article where it says "penny" that should be "fil" as there is no such thing as an Iraqi penny as in 1/100th of a dinar, that would be 10 fils. The ISX is not only full of "penny stocks" but if sub-penny stocks. That will be made (perhaps painfully) clear after an RD and its all expressed in terms of the new-dinar. I would expect a number of reverse-splits during the 1 or 2 year coexistence period.

This--->And managed agency / Baghdadiya News / get the documents that confirm that the central bank ended a plan replacement and set a date early next year to start trading dinar new will start to delete three zeros from it, the process of printing new categories are 50, 100 and 250 dinars, and last category is equal to quarter of a million current currency and this will be the highest category to facilitate the transactions large in addition to the categories currently in circulation after Trchigaha a five dinars and class ten and twenty-five dinars, and these categories of paper, while the metal is 50, 100, 250 and 500 fils in addition to the BD one, which will be metal, too.

Makes no sense to me at all! They already have 50,100, and 250 and the last category is equal to quarter of a million which would be 250,000.

They have 50s, 100s, and 250s in IQD, not the new-dinar that the RD will introduce. Its a new currency. An IQD 50 will be worth 50 new-dinar fils. Likewise an IQD 250 will be worth 1/4 of a new-dinar or 250 new-dinar fils. So they need a new 50, 100, and 250 to be worth 50,000 IQD, 100,000 IQD and 250,000 IQD respectively. Not sure why the 50 and 100 would not be enough, but in a cash centric economy perhaps a 250 also makes sense.

[Halo9678]

I really don't think the removal of 000's is what is being displayed. It seems as though the 'removal' is actually recouping all of the larger notes that have three zeroes in them OR the removal of the three zeroes from their current rate. I don't think that it would be in Iraq's best interest to say that all 25k notes are now worth 25 dinar as that would cause a drastic shift in the way they do bussiness let alone reducing the economic power. No bueno. I would think that the CBI would continue to de-dollarize Iraq by making their dinar closer in value, 1:1, or better but I'm no economist and cannot say for certain... Continue to make plans and don't invest more than you can loose...

[matthew6:19-21]

Well thats's all clear as mud.

[caz1104]

I really don't think the removal of 000's is what is being displayed. It seems as though the 'removal' is actually recouping all of the larger notes that have three zeroes in them OR the removal of the three zeroes from their current rate. I don't think that it would be in Iraq's best interest to say that all 25k notes are now worth 25 dinar as that would cause a drastic shift in the way they do bussiness let alone reducing the economic power. No bueno. I would think that the CBI would continue to de-dollarize Iraq by making their dinar closer in value, 1:1, or better but I'm no economist and cannot say for certain... Continue to make plans and don't invest more than you can loose...

Thanks for your opinion its just as valid as anyones. No one here knows for sure and if they say they do..............................run for the hills. Best to all

[dvforumuser]

I really don't think the removal of 000's is what is being displayed. It seems as though the 'removal' is actually recouping all of the larger notes that have three zeroes in them OR the removal of the three zeroes from their current rate.

I of course think you are wrong, but won't push that. But, I did want to correct a couple of things

I don't think that it would be in Iraq's best interest to say that all 25k notes are now worth 25 dinar as that would cause a drastic shift in the way they do business

It wouldn't be a 25k note being worth 25 dinar, but a 25K IQD note being worth a 25 NEW-dinar note. An RD (whether you think it will happen or not) issues a new currency (maybe they'll call it the NID) with its own symbol, its own exchange rate, and new notes and coins.

let alone reducing the economic power.

Since a 25k dinar would under an RD be worth exactly the same as a 25 NEW-dinar bill, and there would be 1000x fewer new-dianrs then IQD, their economic power would be unchanged. Edited March 29, 2012 by dvforumuser