Move To Cut “Stags” Out Of Share Issues

Press, Volume C, Issue 29504, 4 May 1961, Page 19

Move To Cut “Stags” Out Of Share Issues

(Special Correspondent N.Z.P.A.)

LONDON, May 3. The first major move to discourage “stags” from applying for shares when a new issue is made was announced in London this week. The Industrial and Commercial Finance Corporation Development finance and issuing house, backed by big banks, is opening this week lists for 500.000 ordinary 5s shares in a poultry breeding and broiler company at Ils a share. Three moves have been made to check speculation. They are:— All cheques for application will first be cleared. Multiple applications: a number of applications in the same name may be excluded. Allotment letters Will not be posted or application money refunded until all cheques have been cleared. The “Yorkshire Post” says: ‘The lure of a quick £5O profit is behind the rush for newly issued shares. New share offers are overwhelmed by applications and hundreds of small-time share punters apply with dud cheques.

hoping that their cheques will not be cleared. “Clearing every cheque is an obvious way to combat the dud cheque move. Throwing out of multiple applications will also cut down operations of “stags.” Business Personal Personal.— Mr L. E. West, formerly manager of Charles Begg and Company, Ltd., Palmerston North, has been appointed manager of the company's Christchurch branch. Mr West succeeds Mr V. R. Hill, who has been transferred, on promotion, to the company's head office in Dunedin.