STOCK EXCHANGE CHARGES.

Press, Volume LXIX, Issue 20919, 28 July 1933, Page 17

STOCK EXCHANGE CHARGES.

TO THE EDITOR OF THE PRESS. Sir, —Some members of Dunedin and Christchurch Stock Exchanges, in their righteousness, issued a warning to the investing public to refrain from putting their money into mining propositions, other than listed companies, without first consulting their brokers. These members, with a commendable desire to protect the public, state that in some instances the price asked by the vendors is so high that it is doubtful whether these companies can be made to pay. Anyone who criticises other people's actions cannot complain if he in turn is criticised, so I wish to draw attention to what Stock Exchange members charge for their services in connexion with mining and other shares. If I buy 100 shares at 20s (£100) the brokers get £2 10s, but if I buy 3840 shares at 6Jd (£100) the brokers get £l6. Now is there any righteous reason why these brokers should get £l3 10s more for writing 3840 in the transfer instead of 100, for that is all it amounts to? This is the official charge for listed shares, but what about the official charge for unlisted shares? It is just double these figures. So that in investing £IOO in 63 d unlisted shares the buyer and seller between them pay the brokers £32—and they call this brokerage! No money to find, no risk to take; can any vendors' proposition beat this? These outrageous charges, coupled with the present activity in mining, make the time ripe for the formation of a Minim* Exchange, outside the present stock exchanges, where reasonable brokerages will be charged. We want costs reduced. Here is an opportunity.—Yours, etc., BATTLEAXE. July 26, 1933.