Abstracts » Business

Trading is distorted by privileged few, says OFT

Article Abstract:

The UK Office of Fair Trading (OFT) argues that market makers are able to distort the stock market in a way that damages the interests of ordinary investors. The OFT argues that market amkers have anti-competitive benefits. Some investors argues that there is insufficient transparency in the London Stock Exchange, while market makers argue that the important issue is liquidity. Some analysts argue that the market should be divided, with market makers used for larger stocks and an order-driven system used for smaller stocks.

London Stock Exchange PLC

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Family firms place a price on vote

Article Abstract:

Non-voting shares provide some protection against bids for family firms. They allow companies to expand that would otherwise be deterred by fears of loss of control. UK stock exchange rules allow companies to float with non-voting shares so long as other criteria are met. Institutional investors tend not to make heavy investments in non-voting shares, and voting shares tend to have a better performance. There are some exceptions where non-voting shares have performed better than the market as a whole.

Corporations, Securities

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Wandering off

Article Abstract:

Investors are seeking tighter rules covering nominated advisers for companies on the Alternative Investment Market. Some clients of advisers have been abandoned, and the companies have been delisted so investors have not been able to sell stocks. The resignation of an adviser can lead to problems because new advisers take on responsibility for due diligence failures of previous advisers which is a risk that many advisers do not wish to undertake.

Securities law, Over-the-counter markets, Over the counter markets

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