Page 8 Advertisements Column 3

Otago Daily Times, Issue 21988, 24 June 1933, Page 8

Investment Talks by “The Old Counsellor” No. 12: UNLISTED SHAKES. Is listing on the Stock Exchange an assurance of security and saleability? is a question often asked of me. Quito a natural one. perhaps, when so many investors Invariably confine their buying to listed Issues: often because they do not have their attention directed to the many high-grade shares in well-established Public Companies that are NOT listed on the Stock Exchanges. But listing IN ITSELF is not an assurance either of marketability or security. Listing on the Stock Exchange merely indicates that the company has complied with the requirements of the Exchange—-i.e., supplied information about capitalisation, management, earnings, etc., chlefy to prevent fraud Of unsound practice. One needs only to scan the listed Issues In which there is no trading, often for days at a time, to realise how little Influence “ listing ” has on marketability. Marketability depends more on distribution —how widely an issue Is hold- than on listing. The more investors who know a stock and think enough of it to own ft, the more saleable, other factors heing equal, will it be. , ~ Investors should know that many of the first-class unlisted shares of Public Companies of high standing are' readily convertible Into cash at any time. Not only are many of these companies under highly responsible and efficient management, but they have big reserves, and often enough the shares compare more than favourably with many listed shares, numbers of which have fallen greatly In value . , . some listed shares. Indeed, are quite unsaleable. Many unlisted companies have maintained their profit, and consequent dividends to shareholders, besides strengthening their reserves, right through the depression. It therefore behoves the Investor not to overlook unlisted shares as possible channels of Investment which may easily be the best offering. The wise course, in any event, is to seek the advice of a reputable Investment house, whoso officers will willingly advise or investigate for him. The Old Counsellor The Securities Corporation (N.Z.) Limited, Public Trust Building, Dunedin. Telephone 11-777. l