A GOOD YEAR

Hokitika Guardian, 17 October 1929, Page 8

A GOOD YEAR

STOCKS ' AND SHARES. WARNINGS TO INVESTORS. AUCKLAND, Oct. 14. The annual conference Of Stock Exchanges of New Zealand, was opened this morning, proceedings, as usual being held in camera. Representatives of the various Dominion Exchanges were present.

In welcoming' the delegates, the president, Mr G. C. Greagh, said that die year so far as business was concerned had been a good one from a si. a rebroking point of view* and the turnover in shares and stocks of all cli sses, with the exception perhaps o! gold-mining had been very heavy prob ably constituting a record for some years past. Not only was it true that Stock Exchanges had experienced remarkably good business, but it was satisfactory' to note that general trad-ing-conditions had improved, and the outlook for the immediate future was very encouraging. Many matters had called for the consideration of the com mi:tee during the past year, andyit was becoming increasingly apparent that the affairs of the Association or perhaps more correcdv speaking of the l affiliated exchanges, would require more time given to them than had hitherto been the case. They had probably reached a stage when either conferences should be spread over two or three days, or they should hold meeti. gs at intervals of not longer than six r.u 1 chs.

011 the question df the protection of ii'vo.tors Mr Creagh said: “My preliae?.*or, Mr Reeves, in concluding his opening remarks last year, referred to the qntstionable methods -of a class of share salesmen whom rte, in common with other countries, have in our Dominion, and I would like to draw attention again to his advice more needed to-day then ever before,that investors should communicate with a member of a Stock Exchange before applying for shares in companies about which they have had no previous reliable information. Jn his speech at the annual meeting "of the New Zealand Society of Accountants, the president olf that body warned small, investors of the necessity for being extremely guarded when investing in new enterprises. He pointed out quite correctly that care shotild be taken to see that the prospectus of a new concern is all it purports to be, and that statements of tpe value of the assets being purchased are supported by an expert and reliable valuer’s certificate. Many schemes and flotations, as the journal states, are either over Estimated or over capitalised, and with no chance of success, are being put on the market to tempt the unwary Investor. Another wellknown accountant on the same occasion referred to what he described as ‘the practice of hawking very doubtful shares about the country and selling them' to people who are not able to judge the future prospects.’ He added that he thought as we all do, that an amendment of the Companies Act was long overdue. These are the words of accountants, not of sharebrokers, though they bear out what we have been endeavouring to bring home to the public for a very long time, unfortunately for them, not altogether with the success that could have been wished for.”