B8 - Sunday, May 6, 1984 - North Shore News

STOCK MARKET oo
Learn the rules first

IF YOU ARE going to ‘‘play’’ — or invest in — the
stock market you should know ALL the rules of the

game.

Unless you are an ex-
perienced investor you may
not be aware of some of the
fine points involved in buying
and selling stocks and bonds.
Often, if you are a novice in-
vestor, what you are NOT
told can cost you money.
Alternatively, aif you are
aware and take advantage ol
some of the fine points you
can save a_eworthwhile
number of dollars.

$ $ §$

1 would bet, for example,
that a large number of stock
market investors are not
familiar with two aspects of
the commission a_ broker
charges you when he buys or
sells a stock for you. The
broker, as you know, charges
this commission both when
he buys a stock for you and
when you Sell the stock. That
is the way he earns his living,
and on the surface it appears
fair enough. (A table of the
base commission rates ap-
pears in this column.)

But did you know about
the Turnaround Commission
Rate Reduction? It means
simply that if you buy and
sell a stock (a security)
through the same. broker
within 45 calendar days that

you are entitled to pay a
smaller commission The
reduction in commission

could be up to SO percent

It your broker hasn't told
you about it, you should
discuss it with him and agree
between you that this ‘‘rule’’

will apply in all transactions.
Your best course then 1s to

by
Bill Ryan

keep track of your future
transactions and bring it to
your broker's attention
anytime a 48-day ‘‘tur-
Naround”’ transaction takes
place

Generally, an investor

TABLE OF COMMISSION RATES

Price per Share
$0.005 to $4.99

$5 to $14.99

$15 and up

Broker’s Commission

3% of value of an
order

2% of order value
PLUS 5¢ a share

1% of order value
PLUS 20¢ a share

Minimum Commission of $40 on any
transaction.
(NOTE: These are base commission rates.
They may vary among dealers and may be
negotiable.)

holds his stocks and bonds
longer than 45 days and such
a ‘‘turnaround’’ will usually
occur during a period when
the stock market is very ac-

tive — it is rising or falling
rapidly.

But keep it in mind because
there are more than
*‘peanuts’’ involved — par-
ucularly when you _ realize
that commission rates in

Canada are very, very high in

relation to rates in some
other countries.
$ $ §$
Another fine point — did

you know that sometimes
you can negotiate lower com.
mission rates with your
broker?

One large brokerage house
with which | do
operates on the
any deal

business
basis that
$5,000 (15

ONOT

Mid year economic outlook

A 28 PER cent growth rate
in British Columbia's: gross
domestic product (GDP) in
1984 1s) predicted by the
Employers’ Council of
British Columbia and its
Bconomic Outlook Midyear
1DR4 “Recovery ts progress
ing in British Columbia but
at a slow pace,” said © ounctl
President and Chief bx
ecutive Officer Jim Mathin
In assessing British Colum
bia’s performance since catly
I9DKR3 the report stressed that
coonomig recovery has not
proceeded in an orderly way
After promising signals oun
carly 198 industrial produc
tion slowed down tn the third
and

fourth quatters of Last

year OE owe compare our

COODOM MG ECCOVELY with that

of the tlnited States moa

. Appointment —
~ Notice

|e otha

Taowdt

Manage
ot

VM cae, oe

clear that we are behind their
rale of recovery and are ex
periencing much higher
unemployment,” commented
Matkin

The council publication
provides an overview of the

forestry, metal mining.
energy, Courism, fishing, con

struction, retail sales,
agriculture and transpotta
on sectors of the economy
in addition to regional

economi analyses

JORDANS EXECUTIVE AND
CONTRACT FURNISHINGS REQUIRE
A SALES MANAGER WITH
EXTENSIVE BACKGROUND IN ALL
ASPECTS OF CONTRACT OFFICE

FURNISHINGS AND COMMERCIAL
DESIGN.

Call Keith Bradbury
733-1174

A. bk. LE PAGE

GWEN COUCHEE

LT |

mn

negouable as to commission
rates.

However, a phone conver-
sation I had with Rupert
Bullock, B.C.’s Superinten-
dent of Brokers, adds a new
dimension to the matter of
negotiable commissions.

The stock exchanges
establish the commission
raves and in 1975 the Toronto
Stock Exchange (TSE) mov-
ed to ‘‘fully negotiable rates,
| understand,’’ said Bullock.
The Vancouver Stock Ex-
change (VSE) does not have
fully negotiable rates, but
some general rules about
negouating rates still apply.

This strikes me as a rich
field for discussion! Have
you had a chat lately with
your broker about
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CITY OF VICTORIA

MUNICIPAL
REFUSE
TRANSFER

STATION
REQUEST FOR PROPOSALS

The City of Victoria is obliged to relocate and
enlarge its present municipal refuse transfer sta-
tion (approximately 400 tonnes/day) Proposals are
invited from companies who operate in this field to
provide the necessary facility and to contract with
the City to operate it on a user-pay basis In addi-
tion to operating the facility, the propenent will also
be responsible for the transportation of refuse to a
landfill currently controtled by the Capital Regional
District
For complete details, please contact

H.V. Robinson, P.P.,
Purchasing Agent,
City Hall,

#1 Centennial Square,
Victoria, B.C.

V8W 1P6

before May 11, 1984

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