Rajat gupta
Ton up Member
Hi All,
Can somebody explain if the fund is expanding then the new price (appropriation price) will be greater than/ less than or equal to the unit price before expansion? Do we mean appropriation price as a price that we charge new policyholder for allocation of their units? How appropriation price/expropriation charge helps in securing rights of existing unit holders. I have read how appropriation/ expropriation price is calculated after adjusting for expenses, current assets/liabilities or taxes and unable to relate how this preserves rights of existing unit holders. Can somebody please explain with a help of some numerical example?
Thanks in advance!
Regards,
Rajat
Can somebody explain if the fund is expanding then the new price (appropriation price) will be greater than/ less than or equal to the unit price before expansion? Do we mean appropriation price as a price that we charge new policyholder for allocation of their units? How appropriation price/expropriation charge helps in securing rights of existing unit holders. I have read how appropriation/ expropriation price is calculated after adjusting for expenses, current assets/liabilities or taxes and unable to relate how this preserves rights of existing unit holders. Can somebody please explain with a help of some numerical example?
Thanks in advance!
Regards,
Rajat