RISK IN BUYING SHARES.

Auckland Star, Volume LIX, Issue 247, 18 October 1928, Page 10

RISK IN BUYING SHARES.

OPERATIONS OF CAIrtABSERS,

ADVICE SHOULD BE iA^KED;

(By Telegraph.—Own Correspondent.)

DUNEDIN, Wednesd&y.

People wjio have smalt amounts of money to invest should take the preeaur tion of securing the advice of an, accredited financial expect, said Mr. Harman Reeves, chairman of the New Zealand Stock Exchange Association, at the annual meeting of the association today.

Mr. Reaves said ltd wpuls Jiks fa join hands with the Press' of the Dominion, which had of late teen 'dirCctsmg'"attention to the ; practice of" by. individuals among tinsuspe'dting people "who, in many Eases, had been Victimised. Investors would be'well advised when approached by those share sales-" men to compiunicate with a member of the Stock Exchange before signing any applications for shares. That warning was necessary, as several cases had come under the notice of members where people had taken up shares without making proper investigation as to their' prospect of success, only tq. find their capital had been lost.

It did not follow that a prospectus submitted by someone other than a member of the Stock Exchange was necessarily doubtful, but the chances were that there was a "fly in the ointment" somewhere, not the. least of which was that the cost of selling shares by canvassers was greater than a company could possibly pay.