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Which ticker code to buy when the company has two different tickers? (e.g., VACQ & VACQU)

Personal Finance & Money Asked on June 14, 2021

So I saw Vector Acquisition in the news recently. I was investigating if they would be worth investing in.

However I found it was listed under two different tickers VACQ & VACQU. They seem to be listed on the same exchange and are not (as far as I can tell) like BRK.A and BRK.B e.g., different sized share slices and or different voting rights.

In the case of VACQ & VACQU they both have a similar price but not exactly (give or take a few cents).

The only difference I could find was one was called Vector Acquisition and the other Vector Acquisition Unit

I have also seen this with other companies like LVMH.

So lets say I do decide to buy some shares in say Vector Acquisition (or whatever).

How do I work out the difference between the different tickers and decide which of the two (or more), is the best one for me to buy?

One Answer

When Vector Acquisition did its IPO, they issued a unit (VACQU) which consists of one common share (VACQ) and one-third of a warrant, exercisable at $11.50 (VACQW).

If you divide the price of a warrant by 3 and add that to the price of the common, the total should be close to the price of the unit.

Answered by Bob Baerker on June 14, 2021

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