Cheques For London Share Issue “Bounce”
(Special Correspondent N.Z.P.A.)
LONDON, May 12. More than 100 cheques amounting to £44,000 in a recent public issue of shares ’‘bounced" when presented at the bank, the Stock Exchange announced today. This happened in spite of an advance warning by the Industrial and Commercial Finance Corporation launching shares in a poultry breeding and broiler company that all cheques would be cashed and multiple applications would be discarded. There were 1157 multiple applications for 708.500 shares
and 72 applications for 58,000 shares accompanied by cheques returned unpaid on first presentation. The total amount of cheques received was £13.441,570 and so far 103 cheques totalling £44,440 have been returned unpaid. Action in cashing the cheques immediately was taken in an effort to counter the activities of stags—people who apply for more shares of a new issue than they can afford, in the hope that they will be able to sell them at a profit before they have to pay for them.
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Press, Volume C, Issue 29513, 13 May 1961, Page 9
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165Cheques For London Share Issue “Bounce” Press, Volume C, Issue 29513, 13 May 1961, Page 9
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