BUYING SHARES

Evening Post, Volume CXV, Issue 147, 24 June 1933, Page 11

BUYING SHARES

WARNING JO INVESTORS j

. A warning to investors to make thai fullest inquiry before purchasing bonds! or shares, was'issued by the; president of the South Canterbury' Chamber of Commerce (Mr.., A. P. Greenfield) at a meeting of the-council of the chamber, recently, states the "Tirnaru Herald.'' . Mr. 'Greenfield , said thai, Of. late al great, number of would-be company promoters in the various.cities had in many] instances become a danger, and in soma cases had, even, become parasites.-*- A great many men were'attempting to, float companies,l some successfully, soma unsuccessfully. An endeavour, was bci ing made to float all kinds and condi** tions of industries into companies by] issuing bonds and canvassing for shares, and.he had been asked by businessmen both in the north hud the-south to is'suo a warning to investors. It Was his opinion that something serious would come if a warning was not issued,"and' he thought members of the chamber; and others should help to warn*young people against buying bonds and shares indiscriminately. Young people Ywera buying in this manner,- some on,.tha time-payment system, and if the. prae< tice \Vas not curbed, it would only;be a( little time when 'there would _b#(ng| money to be spent in the town. ,, iS . Mr. Greenfield said that intending in* vestors, should at least go to 7so_i«_ broker, firm of good standing, or person; of integrity, and m&ko inquiries. as.';ti» whether the companies' for which,'tha shares were being offered had a re^pn* able ' chance of success/before ,_ being talked into buying by unscrupulous jjut very brilliant salesmen. Many 'conn panics Avcre,being floated which haclcn. hope of success, and there- had !»,e, er: been such a boom of company floating as there was at the present tim,e'..".A short time ago two men came to -"piniaru' representing a firm outside of' New Zeat land, and-they took £1200 oufYbf th<* town in two and a half : day67"ah<( ''.skited'' about it. 'J'hat was not, right. Intending investors should got-' some'in<j formation as to whether these 'coinpan* ies had a reasonable chance of' suc<jess< There: was nothing to: fear if thcii) articles would bear investigation."';'" lU' had been said: that people .. invested, purely: for speculative purposes, 7bu. when-meh could cqme to t_e:rtown; and| get money as-easily as the two he"hadl mentioned, then it appeared1 necessaryj for a large number of investors to seel* advice before investing.* - . ~-*or!j