More broking houses are starting to enforce restricted trading on more
and more penny stocks. AmFrasers is reported to have put 11 stocks in
their restricted list while UOB Kay Hian has a list of 56 stocks. Such
stocks can only be traded under conditions set by the broking houses
like cash out front, limited volumes to buy per investor or for the
whole house to limit the risk exposure, etc etc.
What would happen if the number of stocks on the restricted list
increases into the hundreds? What are the implications,… that these
stocks are dangerous, not fit to be listed in the exchange, not suitable
for trading by normal investors? If these stocks are so dangerous,
should not they be put into a separate list and investors be made to
sign an indemnity form to declare they know the risk when they trade
these stocks? We do not want them to complain that they did not know
these stocks are so dangerous when they lose big sums of money, right?
Hopefully these stocks are not in the same category as Lehman Bonds or
toxic notes, high risk and should not be touched with a ten foot pole.
For these stocks to be listed in the main board they must be worth
something or at least have some respectability and soundness, or have
been vetted to be ok.
Let’s hope the restricted lists do not grow longer and the few stocks there are an anomaly, exceptions than the rule.
No comments:
Post a Comment