Penny share warning

Article Abstract:

Regulators in the UK investment industry are concern that investors may be unaware of the risks of holding penny shares. Such shares can perform very well, but they tend to be very difficult to sell in a falling market. Spreads are also wide in percentage terms. Penny shares have performed well in the two years to 1996 but they could still involve a high risk. Tighter regulations from the Personal Investment Authority will apply to tip sheets such as the Penny Share Guide.

United Kingdom, Securities law, Penny stocks

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New issues: last orders

Article Abstract:

Over 350 UK individual investors have sent a petition to the Stock Exchange expressing their concern over being excluded from new share issues. The exchange announced in Aug 1995 that companies making large new issues would no longer have to offer some to private investors as well as to institutions. This follows claims that underpricing is needed to attract private investors, but the reverse could be true, and the exchange has not investigated this claim deeply.

Laws, regulations and rules

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London stock market: dealing costs to fall

Article Abstract:

Dealing should become cheaper on the London Stock exchange following the launch of order-driven trading. Private investors could also become marginalized by institutional investors under the stock exchange's proposals, brokers warn. Market-makers will be removed under the new system. Client bargains will be executed by brokers through locating matching orders. The order book could be bypassed by institutional investors involved in large trades.

Management

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