Windfall shares

Margaret Thatcher may have dreamed of a nation of small shareholders. Since then that dream has come true in a way that she never foresaw. Millions of people have become shareholders as a number of building societies and insurance companies have since converted to public limited companies.

Alliance & Leicester, Halifax, Woolwich, Bradford & Bingley and Northern Rock - among others - all handed out free shares to their customers in the biggest boost to share ownership ever seen.

New shareholders have several decisions to make when being offered windfall shares. See: your options.

Several building societies have introduced membership restrictions that prevent carpetbaggers benefiting from windfall shares if they convert to public limited companies. However, should a building society subsequently seek to list on the stock market it's a fair bet that any restrictions won't count for much. After all, it will need your vote before it can list.

See Also: Online share dealing service Stockmarket Centre

Last Updated: June 2007 © Moneyextra.com

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