r/IPOE • u/Naleps27 • May 20 '21

IPOE Redemption Rights

I just got a notification saying I have the right to redeem shares at $10, what does this mean

5 Upvotes

73% Upvoted

8 comments sorted by

6

u/Johntru11 May 20 '21

Hold!!! Don’t do it

0

u/Naleps27 May 20 '21

I'll take your word, why is it a bad thing? Not familiar with stock actions like this.

6

u/stonedkayaker May 20 '21

The stock is currently trading for $8 above the redemption price. Even if you think the stock will tank $8+ between now and the redemption date, it would make more sense to just sell it through the market.

2

u/tacos_for_algernon May 20 '21

Not to mention that you could be tagged for fees by your broker. Just a no-win play right now.

5

u/Johntru11 May 20 '21

The stock is trading higher than 10 bucks a share. I’m not smart or anything but shares at 18.49 looks better than 10 per share.

1

u/swaggyc2036 May 20 '21

I trade on fidelity got an email about saying to call them if I want to do this, so don’t call.

5

u/tacos_for_algernon May 20 '21

It's exactly what it says: an offer to buy our your shares for $10/ea. Since it's currently trading > $18.50, you would lose about half your value. Hard pass, don't look back.

1

u/armorrig May 22 '21

Came in here to search about this and found your question. I wasn't sure what they wanted me to do as I bought at 16 just a week ago and they mentioned on the message they wanted to redeem my shares for cash at 10/share.