Small investment scheme has loopholes: brokerages

Focus Taiwan
Date: 2017/01/14
By: Tien Yu-pin and Frances Huang

Taipei, Jan. 11 (CNA) A newly announced small investment scheme to make expensive stocks and other

CNA file photo

securities more accessible to retail investors could have loopholes, according to brokerages.

Securities sector insiders said ill-intentioned majority shareholders of a listed company could take advantage of the loopholes to dump their shares.

To be launched on Jan. 16, the small investment scheme allows retail investors to own expensive stocks such as smartphone camera lens supplier Largan Precision Co. (大立光), which closed at NT$4,240.00 on the Taiwan Stock Exchange (TWSE) on Friday.

Stocks in Taiwan are usually sold in minimum blocks of 1,000 shares, meaning investors would have to spend at least NT$4.24 million (US$134.200) to buy Largan stock, an amount often out of the reach of most individuals.    [FULL  STORY]

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