LONDON (AP) Small shareholders in Royal Mail on Tuesday had their first opportunity to cash in on the stock's spectacular stock market debut.
Royal Mail shares first soared on Friday, when trading began, though only for big institutions and investors who bought through brokers. On Tuesday, trading was opened to the general public. That allowed small shareholders who bought stock through the government to sell their shares and pocket a near 50 percent windfall.
At the close, Royal Mail shares were 3 percent higher at 489 pence ($7.82). That's around 48 percent higher than the 330 pence at which the government initially priced the shares.
"With the short term return so strong, it's understandable smaller investors are looking to take some money off the table," said David White, a trader at Spreadex.
The sharp rise has led some to argue that the government sold the near 500-year-old company too cheaply.