FACTS FOR INVESTORS.

Auckland Star, Volume 304, Issue 304, 23 December 1926, Page 4

FACTS FOR INVESTORS.

STOCKS AND SHARES. DUXEDIX BROKER'S T_E"vV_. In the course of hi? review of the money and share market at the annual meeting of the Dunedin Stock Exchange, the chairman (Mr. Hannan Reeves 1 said that a factor in keeping debentures interest in the Dominion at a reasonable rate had been the large amount of money invested in Xew Zealand public bodies* loans during the year by Australian investors. "The scarcity of good securities continues to drive us. no matter how unwillingly, into outside markets., and more particularly into making purchases of Australian stocks." he. said. "The result is that an increasingly large amount of money continues to be invested in Australian banks, insurance, and commercial shares. "1 would like to take this opportunity." continued Mr. Reeves, "of advising investors, and the public nenerally. to consult a member of a recognised Stock Exchange before being induced to purchase shares in new companies, or any company for that matter, by share salesmen who are roving round the Dominion selling shares, and. j who are not members of any recognised Stock Exchange. In this connection. 1 may mention a case which came under my notice during the year. A country doctor was induced by one of these share canvassers to purchase 250 shares in the Australian Company at 15 ' per share. Had the doctor consulted a member of a Stock Exchange before purchasing, he would have ascertained that the same shares could have been purchased on the Melbourne Stock Exchange for 53 per share at the time be gave 15' per share for them. '"Forestry bonds are still being offered for sale by share canvassers, and in some instances they state that these bonjis are better than life insurance and just as safe. and that the return from the investment "will be many times greater than that obtained by endowment insurance policies. This is untrue and misleading. A recent article in a leading London financial paper states: 'To compare these afforestation bonds with endowment pohcies is pernicious nonsense—pernicious because it i_ likely to create an erroneous impression 11 the minds of unsophisticated investors The bonds are obviously an investment in the proper sense of the word, but a long shot speculation, and as such they should be eschewed by people whom eecurity for their savings should be the first consideration.' "