Most people will make up their mind whether to sell their standard life shares or whether to hold on to them based on their financial circumstances and their reading of the stock market – a difficult task at this time. However, there is no substitute for advice from a stockbroker. Of course you have to pay extra for advice over and above the normal execution only service.
Some experts predict that Standard Life shares will rise, along with the rest of the market in the near future. Others are not so optimistic and feel that it will take a long time for Standard Life shares to recover to their former levels.
On flotation, Standard Life put in place a share dealing service. However you may want to arrange an alternative online share dealing service which may be a cheaper way to sell your standard life shares. Some people who have held onto their demutualisation shares in other companies saw a decent increase in share value over the years. However Norwich Union (now Aviva) has only increased by about 20% in total over a number of years and the former building socieities have had a torrid time.
Standard Life shares reached a level more than 40% above their initial offer price. Prices have steadily climbed to over the 340p mark, although with current stock market volatility, the price has fluctuated a lot, moving back to 290p in late July 08. Further problems has led to a fall as low as £1.70
How to sell
For those who opted to receive a share certificate and then sell later, a number of companies provide online execution only trading. Amongst the best deals for execution only share dealing services are from Halifax, Barclays and TD Waterhouse at around £10 -£13 per deal.
It is predicted that having obtained their shares, some policy holders may feel it best to cash in their endowment policies following demutualisation, on the suspicion that bonuses may diminish to pay for shareholder dividends. Most policies will achieve up to 10% more if you sell the policy rather than cash in