Stock Market FAQ

Author: Derek Offord
Sep 4, 2008
I have 934 shares in Ferrarris Plc. I was advised thjat they had been taken over by Bionostics plc who in turn have been taken over by Nav Bidco Can anyone confirm if this is the current situation. Do these shares have any value.

ANSWER 4th September 2008 Hi Derek, that seems to be about right. Ferraris PLC changed it's name to Bionostics PLC. There may or may not have been new certificates issued. About January 2008 there was a cash bid of 30p per share by NAV Bidco Limited. The bid was effected by way of a Scheme of Arrangement which was no doubt sanctioned or approved by a Court of Law. This usually means there is no acceptance required by the shareholders and the cheques in consideration are just posted out to shareholders, in your case £280.20. There was an Unlisted Share Alternative but this would have to have been accepted under a Form of Election. Now did you receive this money around that date? If not was there any change of your address about that time that would have made contacting you impossible? If you definitely did not receive any notification at the time or the cheque then I would imagine the money is being held somewhere awaiting your claim. I did find some contact details for NAV Bidco from the internet but the first suggestion is to contact the Registrars whose name should appear somewhere on your certificate for the Ferraris shares. If you need further help please contact me on the Shareworld contact page and I will get some numbers to try.

Author: Brendan
Sep 1, 2008
I was wondering if you could give me a fair argument to why the Stock Market would be a better investment than say property or other forms of investing. You see my mother and father invest in property and want me to do the same and I really want to get into the stock market. I would love if you could give me a list of the good points of the stock market and why it is better than other forms of investing. This will help greatly in my case of using my inheritance to invest where I want to invest. The Stock Market excites me and seems like it could be something I could do on a daily basis Whereas the property market seems more like long term and that means I would have to get a day job.

Looking at the residential property market, in particular the UK, it has proved a remarkable investment from Post war to current day, inspite of the occasional ups and downs and crashes.

As for stock market investment this is all about selectivity and can produce equally impressive or better returns over the longer term.

For a detailed explanation of this subject please read our article on stocks versus property.

Author: Ros
Aug 27, 2008
I have shares certificates with Abbey National. Is there anyoneI can I can ring to find out what I do with them?

ANSWER 27th August 2008

There is some comprehensive information in the link 'read all questions'

Basically Abbey National was taken over by Banco Santander and you should be receiving Entitlement Statements showing your holding of these shares as CDIs(Crest Depository Instruments). Contact the registrars on 0870 5329430. The shares can be sold through the registrars Equiniti.

Author: Pat
Aug 23, 2008
How do I find out how much my shares are in Leeds Utd plc are worth?

This question has already been answered, here.

Author: Barry Roberts
Aug 22, 2008
Hi can anyone advise me on this problem i have. I have 2000 leeds sporting plc shares, which i bought in 1999. Now i would like to know how much they are worth and who to contact. I also have the same problem with totalise plc, i bought shares from them in 1999 and would like to know how to find out the value of them. Would be grateful of any information on how to resolve the above problems. Thanks to you all in advance regards Barry.home[at]ntlworld.com

ANSWER 23rd August 2008

The answer to this question and to the previous regarding Leeds Sporting/Leeds United has already been answered here.

Totalise was put into administration sometime around 2002. 

Author: me
Aug 19, 2008
is €15000 a good deal for this software Programe by goslin about spread betting On sports or is there a cheaper one around For a novice.

ANSWER 19th August 2008

I am sorry but I just don't know. 15000 Euros seems a heck of a lot of money to pay for an unknown piece of software and not knowing what it does. For that sort of money I would expect a trial period. As I have said before I would want to know a lot more before I parted with my hard earned cash.

Author: Anonymous
Aug 17, 2008

Is there a successful future for a person that can predict which way the stock market will go, on any given day, and do you think brokerage firms would be interested in having such a person working for their firm? Also, are brokerage firms and investors interested in "backing" someone that has his ability and what is needed in order to get the show rolling? practicalsolutions2008[at]gmail.com Thanks

ANSWER 17th August 2008

If you mean you can successfully predict which way the stockmarket will move on any given day then I suspect you do not need any backing. Just borrow as much money as you can and trade index options or index futures on margin with a spread betting firm.

It is difficult to see how you would approach a Stockbroker just on this basis alone. I suspect your prospective employer would be somewhat sceptical and would require other more conventional attributes.

Author: Geoff
Aug 15, 2008
There seem to be a lot of stockbrokers all over the UK. I thought stockbrokers were in the city of London. Wat is the advantage of using a 'local' stockbroker?

ANSWER 15th August 2008

Please see our article here.

And our UK Brokers directory here.

Author: MBHC
Aug 12, 2008
Hi, I was looking for some information on 'Fixtures Trading' I received a brochure from a company here in Ireland called Gosling Investments and they're selling expensive software that searchs the web for different bookies odds. I was just wondering if anyone has any information about the company or the process, I can't find any information anywhere about either.

ANSWER 12/8/08

If you look through the previous Q & A (see Read all Questions on Home page) you will see several questions relating to this subject and my answers contain all the information I have, which is very little. There is a website http://www.fixturestradingadvice.co.uk and I suggest you email them for information.

Author: JR
Aug 8, 2008
What happened to last minute.com? I have a share certificate but can't fidn them anymore. Were they taken over? JR

ANSWER 8th August 2008

Lastminute.com was taken over by Travelocity which is part of Sabre Holdings, an American company. Sabre was listed but Sabre was deregistered and de-listed in March 2007 and is now a private company. Lastminute.com was floundering a bit when it was taken over therefore I doubt if there was any money for the shareholders. It may be worth contacting the transfer agents for Sabre:

American Stock Transfer & Trust Company (AST) 001 718 921 8317

Or write to them, giving all the details on your certificate, at

59 Maiden Lane
Plaza Level
New York, NY 10038

Author: JR
Aug 8, 2008
Any ideas what happened to Birchin International? I've just found a certificate. JR

ANSWER 8th AUgust 2008

Birchin International cahnged its name to Park Row Group Plc on 7th May 2002. Park Row was taken over by Royal Liver Insurance in March 2003 for 56p cash per share.

You may be on a dissenters list and still entitled to the cash. Are you sure you didn't receive a cheque? If not then try contacting Park Row:

General Info:
0800 0855 403
Head Office Address

Park Row Associates
5th Floor
Gallery House
125 - 131 The Headrow
Leeds
LS1 5RD

You will have to be persistent and polite to track this down, but remember you want to find out who holds the dissenters register for Park Row Group. If you get stuck email me on our contacts page.

Author: JSTWP
Aug 5, 2008
Among my elderly mother's papers I have found a contract note for 1700 25p MCKECHNIE BROS shares issued in 1984 but I can find no trace of the company. Can you please help me to find out what happened to them?

ANSWER 5th August 2008

Mckecknie Bros. became Mckechnie PLC and was then taken over by FKI PLC. FKI has just been taken over by Melrose PLC.

What you have to do now is try and find if your Mother still holds any shares. The contract note just establishes that she purchased shares, but, of course she could have subsequently disposed of them. Can you find any share certificates in any of the above names?

Don't worry if you can't. The next stage is to contact the company Registrars. They are: 

Capita Registrars

Corporate Actions

 The Registry

34 Beckenham Road

Kent, BR3 4TU

Telephone Shareholder helpline: 0871 664 0321

Give them a ring, your mother should be standing by because they will need her authority to talk to you.Give them her full name and tell them she held x number of Mckecknie Bros shares. Find out your mother's address at the time of the purchase and any other possible address. They should be able to locate the original holding and then tell you what happened to it. As I say they may have been sold, or there may even have been a cash payment in respect of the FKI bid. The other possibility is that the shares may have been registered in the brokers nominee name, but take one step at a time. Make notes of what you are told. Registrars may be slightly reticent to give you the full details but just keep plugging away. If and when you have established if there is a current holding you will probably have to complete a Letter of Indemnity for the lost certificate. The Registrars will help you here. If you get stuck for any reason contact me on the Shareworld contact page. 

Author: naresh
Aug 2, 2008
my question is that what is stock market , on what factor does it depend? am new to stock market please explain me clearly

ANSWER 3rd August 2008

It's like any other market. Like a cattle market. It is a 'place' where buyers and sellers come together, in this case to buy and sell shares. In an established stock exchange (market) there are rules and regulations that every participant or member has to abide by. There are established methods of reporting trades and news and there is an efficient and fool-proof system for settlement of stock and money. This is called the secondary market. Shares of a company change hands between third parties and do not benefit the company. There is also a primary market where new or existing companies can raise funds via the stock market. 

Author: steve
Jul 31, 2008
I have 200 Abbey National shares ( Santander) shares - I am getting dividends but I wish to sell them - what do I have to do?

ANSWER 31st August 2008

Firstly I assume you have an Entitlement Statement showing that you own the shares and that they are held as CDIs (Crest Depository Instruments). You probably will not have a share certificate (unless you have an individual Crest membership). 

There are two ways to sell Banco Santander shares:

The more difficult way (and you need a stockbroker) is to transfer the shares from the Depository the shares are with now to your brokers Depository. Then you can decide when you want to sell them.

However, the easiest way is to contact the Registrars (Equiniti) and ask them to sell them for you. I suspect there is a small fee.

Their number is 0870 5329430

Author: Bill
Jul 31, 2008
What is the meaning of selling short?

ANSWER 31st July 2008

Selling short is basically opening a position with a sale rather than with a purchase (going long). The position will be closed by a purchase. There are two situations; covered, where you own the shares already and naked or uncovered, where you do not own the shares already.

There is a simplified (hopefully) article on the link http://www.shareworld.co.uk/index.php?page=falling-market or at the top of the left column on this page you will see a link 'how to make mioney in a falling market'

Author: stephen
Jul 29, 2008
i bought leeds sporting shares and m v sports shares 8 years ago. I just want to know if there worth anything now.....thanks.

ANSWER 29th July 2008

Leeds Sporting changed name to Leeds United. Leeds United went into administration March 2004. The club was sold to a local businessman and ultimately ended up in the hands of Ken Bates (Ex Chelsea).

MV Sports became Tandem Group. They are quoted on AIM, symbol TND.L price 11.5-12.5p

I would check your holding in Tandem with the company Registrars and check what certificate you should have.

Regiatrars are Capita (01484 600904)

Author: tomo
Jul 28, 2008
pacific media share price

ANSWER 28th July 2008

Pacific media changed its name to Responzetv PLC (RETV.L) in December 2006. The shares were recently suspended, at the company's request, at 24.5p on 22nd May 2008 pending clarification of their financial position. I am afraid this usually means bad news for the companys' shareholders.

Author: Darron
Jul 25, 2008
Can you please explain what the auctions are all about. Iam referring to shares on the London Stock Exchange.

ANSWER 25th July 2008

The share auctions are held at the beginning and end of the trading day. The opening auction is between 7.50 and 8.00 and the closing auction between 16.30 and 16.35. There is a random end time of between 0-30 seconds.

There can also be auctions during the day for other reasons. They are fairly complicated and lengthy so I will not go into them here.

Let me describe the closing auction. This only occurs in SETs stocks (order driven). Between 16.20 and 16.30 the system constantly calculates every shares VWAP (Volume Weighted Average Price).This can be used as the 'closing' price of the day. The reason for the VWAP is that in relatively illiquid stocks a small trade at the end of the day could be used to manipulate the closing price. At 16.30 the auction begins. The auction is to further prevent the manipulation of the closing price in very illiquid stocks. Trades can be entered into the system as normal. They can be limit orders, orders at best, iceberg orders etc. These orders can be amended or deleted whilst the auction is open. At the random end point the auction is closed. The system then calculates the un-crossing price. Buy and sell orders that are at best (at auction) will be matched and also any buy and sell limits will be matched where possible. The reason for the random end times is to prevent manipulation of the system by limit orders being put into the system with the intention of being deleted before the end of the auction.

There is nothing to stop you putting in a limit order way above (to sell) or below (to buy) the 'proper' price (the last trades or the VWAP). It may work out that your order will be filled depending on the other orders in the auction.   

Author: sandy
Jul 23, 2008
We have some share certificates from 1968, How do i find out if they are still valid.

ANSWER 23rd July 2008

Firstly look to see if they are still listed (quoted). If so check with the company Registrar to see what your present holding is and if the certificates are still valid. Otherwise you have to find out what happened to them. Search the internet, Inland revenue site for nil values etc. Contac me (via Contact Us link) with the names and full description of security and I will try and help.

Author: Jason
Jul 21, 2008
Hi im completey now to this and I want to make a small investments in the safest stock available? Any help would be much appreciated....

ANSWER 21st July 2008

Unfortunately we are not authorised to give investment advice. I would suggest you talk to a stockbroker. He will need to know your financial circumstances before making any suggestions. Personally I think it would be worth looking at ETFs. If you haven't got a lot of money it is difficult to get any level of diversification from individual stocks whereas a well chosen ETF or two could do this.

For stockbrokers in your area look at our directory or contact APCIMS or the Securities Institute.

Author: Danny Mc
Jul 21, 2008
What seems to be the hottest stock option in the us market at the minute and at what price?

Sorry this question is a bit out of our range. Maybe we should start a forum!

Author: Rooster
Jul 21, 2008
Hi anybody out there ever have a lexus is200 im about to buy one 2004 any comments,problems,good benifits,what was it like for you?thanks

ANSWER 21st July 2008

Is this site that bad?

It is about Stock Market investment.

Author: Steve davies
Jul 21, 2008
Can you tell me what the phrase stop-loss means?? Thanks in advance

ANSWER 21st July 2008

A stop loss is an order placed at a certain price, the object of which is to limit your loss, or stop your loss at a certain level. Let's say you have purchased a share at 100p and it starts to go down. You want to hold the stock because you think it will eventually go back up. But you don't want to lose too much money. So you place a stop-loss order to sell if the price goes down to, say 80p. Now if the price does go down to 80p or below your sale will be effected thereby limitng your loss to a maximum of 20p.

Now this is all very well in theory, but what about the practicalities? Unless it is a guaranteed stop loss, if the price moves down to 70p you will be closed at that price under a rule called 'best endeavours'. For this reason a stockbroker will not take a guaranteed stop loss order.

You can place a guaranteed stop-loss order through spread betting (or even a bungee bet; see article) but it will cost you.

Author: Mr J White
Jul 19, 2008
I am on the verge of investing some money into something called fixture trading with a company called Gosling Investments but am worried about the authentisity of the product and of the company, any infomation on either would be helpful.

ANSWER 19th July 2008

I know nothing about Fixtures Trading but I am highly sceptical and I certainly would not waste my money on anything I knew very little about. There have been a couple of previous questions on the subject that you can read on the link  "Read all Questions". That's about all I know and, sorry, but that's all I want to know. 

Author: Admin
Jul 18, 2008
Due to a flurry of activity on Shareworld Dave Smith and Rooster's questions were pushed from this spot before I had a chance to answer them! Click on the link above to Read all Questions and you will find them and my answers.

Admin

Author: John Anthony
Jul 18, 2008
I am in Ireland and i was considering getting into the Irish Stock market i was wondering which market would be a more lucrative market the U.K or the U.S market. Could you please advise. Novice.

ANSWER 18th July 2008

It is really a question of what you feel more comfortable with. On the UK market there will be more companies with which you may be familiar. There are Irish banks, airlines, oil exploration and more. Also with US stocks you have to consider, maybe more, the effect of the exchange rate movements.

American stocks are in the main higher prices. Note that when you see a price in US it is displayed as $. For example 125 is $125. Whereas in the UK prices are in pence, thus 125 is 125p or £1.25 ( a big difference!). Another point is UK market (and Irish) opens between 8.00 and 16.30 whereas US is 14.30-21.00 our time.

Hope this helps.

Author: Rooster
Jul 18, 2008
Is writing covered calls a sustainable way of making money on the options market?

ANSWER 18th July 2008

Hum. Sustainable. It can be, but obviously you run the risk of the stock being called off you. You must decide at what level you would be happy (or not unhappy) to sell the stock. And how conservative you want to be in writing the calls.

You always have the risk of the stock racing upwards (maybe a take-over bid) and losing the stock.

The other strategy is writing puts. A few days ago a 280p or so PUT for Lloyds looked interesting. You either get the stock or keep the premium.

Author: Dave Smith
Jul 18, 2008
What is accrued interest?

ANSWER 18th July 2008

Accrued interest: This is mainly on Gilts or Government securites. On a gilt the interest, as you know is paid half yearly. At the beginning of an interest period the interest accrues on a daily basis. So on the first day after the bond has gone Ex-Interest it will have one day (Years interest divided by 360 (I think)) added to its value and so on until it goes Ex again. If you buy that Gilt you will pay the purchase price plus one day of interest. This interest will be part of your capital cost. You are basically buying part of the interest which you will eventually get so most investors don't like to buy when the Gilt is 'full' of accrued interest. If you buy a gilt with no or very little accrued interest and sell it 'full' of interest just befor it goes Ex. this is known as bond washing and is illegal as you would be turning taxable income into a capital gain and evading tax, possibly.

I think you can also have minus days interest. If you think this is relevant to you ask me again and I will double check. 

Author: mark layton
Jul 17, 2008
Hi, ive noticed you posted a reply about a month ago on yahoo concerning a company Gosling Investments. I am about to buy a software programme from them but wondered if you had heard any more info on them or maybe you could direct me to a govt agency who could enlighten me about the history or owners of this company. Thank you for your cooperation and hope t hear from you soon..

ANSWER 17th July 2008

Firstly I have no information on Gosling Investments and I know nothing about Fixtures Trading, although I can guess. As I mentioned before there is a website http://www.fixturetradingadvice.co.uk Simon French the owner of this site says he will give advice on available trading software to those who email him. Simon also says that this software costs between £4000 and £12000. Usually on a mathmatical trading or betting system it is very small returns for high risk. Of course you can hedge out the risk if it starts going wrong but that also hedges out your potential gain. My knowledge is in options and futures trading and you don't need sophisticated real time software to be successful. Like anything you just have to know what you are doing and be able to work out the risk and how to hedge if necessary. This can be done with Excel, a few macros and the right information. I am always sceptical on people who have a successful system and then make money on selling software, advice, books etc. Why? Usually as the system gets more followers it begins to break down. If I have the software that basically is telling me how everybody is betting I may be able to devise a strategy to use that information to my advantage. Simon says there are a few major bookmakers who  do fixture trading. Ladbrokes being one. So I suggest you talk to them. If you know anything about Fixture trading let me know and I will publish your comments.

Author: Tony
Jul 17, 2008
I have received a letter from Capita Tracing telling me they can claim some money for me in respect of some Amstrad shares. They want 15% of the value as their fee. This seems a bit steep what should I do?

ANSWER 17th July 2008

Yes it does seem a bit steep, especially as this company is related to Capita Registrars; so not much work for them to get 15%!

It is all legitimate, though. There are some tracing companies that want an up front non-returnable fee for this sort of service and it usually turns out that you have already had the money!

What's this about? Well, from memory, Amstrad were taken over by Sky Digital a year or more ago and paid cash to Amstrad shareholders who formally accepted their offer. Now those shareholders who did not accept the offer for various reasons (maybe a change of address) would have become what are known as dissenting shareholders. Nothing has happened to the Amstrad shares and if you want the money just write to The Dissenting Section at Capita Registrars in Beckenham. You will also need to send the share certificate. If it is lost then tell the Registrars and they will send you a Letter of Indemnity. Depending on the size of your holding this may cost you (nothing's free in this game) around £50.

There I have just saved you that 15%.

Capita Tracing Solutions, launced in March 2008 is part of Capita Group Plc. (the people who run the London Congestion scheme and soon the new NHS digital presence). 

Capita Group(CPI.L) is quoted on the London Stock Exchange and is part of the FTSE100.

Author: Bill England
Jul 14, 2008
I have two share certificates-one is for 100 Abbey National units and the other for 100 Banco Santander units. Has the Banco Santander certificate replaced the Abbey National certificate or do I have 200 shares?

ANSWER 14th July 2008

The Banco Santander replaces the Abbey National certificate. I doubt if you have a certificate for Santander, rather an Entitlement Statement as these shares are CDI (Crest Depository Interests).

The Abbey National shares certificate is no longer of any value. 

If you want to sell it is probably cheapest to go through Abbey National: Telephone 0870 5329430

Author: G. Morris
Jul 14, 2008
could you please give me info. on tracker funds and etfs , the latter i have seen mentioned in articles as maybe a better bet than trackers?

ANSWER 14th July 2008

As you say there are two types of tracker. The conventional trackers are Unit Trust or OEIC (Open Ended Investment Company) and then there are ETFs (Exchange Traded Fund). Three things to consider in trackers are the particular index (or underlying instrument), the charges and the tracking accuracy.

The main advantage of an ETF is the cost. This is nearly always lower for an ETF than for the former options. A FTSE100 ETF will have a TER (Total Expense Ratio) of around 0.4% initial cost whereas a tracker will probably be around 1% each year. The ETF charge is included in the share price. You will also incur normal brokerage but note ETFs are free of SDRT (stamp duty). These are passive funds (they need no investment management) and therefore the management cost should be minimal. The way ETFs work (between Market Makers and the ETF provider) insure that the cost is low.

ETFs can be traded any time of the day whilst the market is open and they can be put into an ISA.

ETFs track their underlying instrument with little variance.

ETFs cover a variety of underlying instruments from major indices to agriculture and metals.

There is an article on ETFs in the Articles section and some lists of what's available.

Author: Confused
Jul 4, 2008
I am getting in a right (excuse the pun) muddle with all the bank fund raisings. Would you mind putting them on your website all together. Thanks

ANSWER 4th July 2008

I must confess I have the same feeling! I will put the details here as soon as possible. You can see B & B over on the Market News upper right.And the others are in previous answers, but yes all in one place is a good idea!

Barclays Bank: 3 for 14 @ 282p  Ex. 26/6/08 Acceptance & Payment 11.00am 17/7/08 (remember this is an Open Offer so no lapsed proceeds)

Bradford & Bingley: 67 for 50 @ 55p EGM scheduled in the week beginning 14/7/08 so should go Ex. the following morning and acceptance & payment three weeks later.

RBS: 11 for 18 @ 200p Ex. 15/5/08 Payment 6/6/08

HBOS: 2 for 5 @ 275p Ex. 27/6/08 Payment 11.00am 18/7/08

If payment does not reach the Registrars by the time and date specified the new shares will lapse. If it is a rights issue you will automatically receive lapsed proceeds (the premium as at the last day of dealing nil paid), if any.

Of course you can sell the nil paid shares (except Barclays) in the market ( a few days before the acceptance date depending on your broker)

E. & O.E.

Author: John
Jul 3, 2008
Can you reccommend any broker companies that have a good record for stock advice?

ANSWER 3rd July 2008

We do not recommend particular brokers. The Investors Chronicle regularly conduct readers' polls of Private Client stockbrokers so it would be worth looking that up. I believe Redmayne Bentley always do well and they have branches all over the country. Bear in mind each Stockbroker is made up of individuals so it is really the individual's record and how you interact with him/her that is important. You need to find a broker who is experienced in your particular type of investing.

We would like to hear of readers' experiences with different brokers so that we may publish your comments in the Beginners Section.

Author: Darron
Jul 3, 2008
When is the ECB announcement to be made regarding interest rates?

ANSWER 3rd July 2008

The announcement is due to be made at 11.45 GMT (1.45 CET). It is widely expected that the rate will go up by 25 basis points to 4.25%

Author: Cole
Jun 30, 2008
Is there anyone on this forum that has been trading Forex successfully for more than a year i am very interested in getting going with forex i just have a few reservations about it and i would have a few questions for anyone that can help me. Thanks

ANSWER 30th June 2008

Sorry to say we cannot help you on this one. Our expertise is mainly in stocks & shares and their derivatives. FX trading is really a seperate subject. Personally I would avoid the many FX trading people who come and go, but instead try someone like IG Index. They have online seminars and real seminars from time to time and should be helpful to potential new clients. 

Author: David B
Jun 29, 2008
Can anyone give me some info on fixture trading ie good software, good companies etc.

ANSWER 29th June 2008

Unfortunately I know very little about fixtures trading and it is not really an investment subject. There is a website http://www.fixturetradingadvice.co.uk and they recommend Ladbrokes and Pinnacle amongst others. So if I were you I would 'phone one of them for information/advice. 

Author: Ray Green
Jun 27, 2008
Who owns or manages the PHAG ETF?

ANSWER 27th June 2008

ETFS Physical Silver (PHAG) denominated in US$ and listed in London is a product of ETF Securities Limited.

http://www.etfsecurities.com/

Author: Mark
Jun 26, 2008
Have you got details of the Barclays Bank rights issue?

ANSWER 26th June 2008

Actually it is not a rights issue. Barclays are raising funds by way of a placing and an open offer to shareholders.

The details of the offer are 3 new shares for every 14 held at a price of 282p. The offer went Ex. today. If you sell today you are still entitled to the offer. If you buy today you will not be entitled to the offer. The shares being placed are going to various institutions and the so-called sovereign wealth funds, like the Qatar Investment Authority. 

The main difference between a rights issue and an open offer is that if you let a rights issue lapse (don't take it up) you will be paid out any premium, whereas you don't with an open offer.

Author: derek g
Jun 25, 2008
hi, just wondering if you guys could help me? im learning how to buy and sell shares and am wondering how to set limits and if they ar helpful or not?? Thanks in advance for the help.

ANSWER 25th June 2008

This is such a big subject, I will have to write an article soon. Are limits useful? As usual the answer is yes and no. They must be used sensibly and to achieve the desired result. In a brokers office you rely on your dedicated dealer most of the time. If you are buying as a med/long term investment you should have a price range where you think the stock is good value so limits are less important. If you are trading short term you need all the help you can get. If a stock is moving around then set a limit just to prevent paying the highest price of the day.So if the price is currently 100-105 then you could set your buy limit at 110. If you are trying to get inside the spread then a good rule of thumb is to go just off the mid price.So at 100-105 you bid 103. You have to be sensible about this. If you are trading 1000 shares a penny saved is only £10. Who is going to do much work for £10? If you are trading half a million then a thirtysecondth is £312.

If you are dealing with a person then be precise. If you say sell at a limit of 102 but I would take 101 then your limit is 101! 

Do you mind missing the deal for £20? You see traders who really want a stock but thinking that it's always good to strike a bargain put on a limit to save them, say 10000 pence. They miss the trade through the limit and the stock goes up 10p. So they have missed £1000 for £100!

Also remember that the market are dealing to suit themeselves. So if it suits them you will get your limit and if not you won't. The classic situation is bidding 9.25 for a 9-10 quote and getting it, only to hear the jobber say "how many more do you want like that?"

I am not sure of the statistics on the following but it is always said you should avoid round number limits or levels that the experts are suggesting. For example most people will say "sell if it gets to £5". OK, why not 495 because invariably it never sees 500 (possibly because there are lots of other sellers on the round figure. Or if the brokers etc. have a published target, why not get out slightly under that?

One last example is that penny stock that has been 2-3p forever (remember that's a 50% movement to break even). You think you know something. If you are buying a lump then you might get your stock at 1.75p.

To sum up, don't think of a limit being some sort of bartered discount or beating the market. Make sure you know why you want to set a limit and see if it stacks up.

I have only mentioned buying here for brevity but this all applies to selling limits ( and then there are stop losses, which is another subject). If you think an article would be helpful then let me know, or anything else specific.  

Author: cole
Jun 25, 2008
Does anyone know of any good Forex trading software? Or of any free demos i can try? I have tried a good few of them but none have met my standards for purchasing as yet? Any help would be appreciated!

ANSWER 25th June 2008

Looks like the second question in a row which is not really our pitch. I can only suggest the major companies like City Index or IG Index. You will find they are very helpful. We are hoping shortly to organise some seminars with these sort of people which should prove useful.  

Author: Rooster
Jun 25, 2008
Is the stock market the same as a cattle mart?

Yes, in a way. Let's assume mart=market. A market is a market. It is a place or a gathering of buyers and sellers meet to do business.There are markets where the trade is one way, like a supermarket but a true market is one where there can be two-way business, buying and selling.The trading is usually carried out in an organised manner and according to laid down rules and by observing various formalities and there is part of it where the "settlement" takes place, which again complies to certain rules. This being the settlement of the money and athe settlement of the stock. The stock market is slightly different in the fact that there is also a primary market where companies raise funds. 

Author: Ray
Jun 25, 2008
Ive heard of something called `Bungee bet!, Can anyone explain what this is? Many thanks

ANSWER 25th June 2008 

This is a new type of stop loss introduced by IG Index.With an ordinary stop loss, if your price drops to that limit it is closed. End of trade. With a bungee bet if the price goes down to your stop loss or lower whilst the bet is still running, nothing happens. The price then begins to rise again (hence bungee) and at the expiry date of the bet, if it is lower than your stop, it doen't matter; you are closed at the stop, and if it is higher then you are closed at the higher price. So you cannot lose more than your stop level, but may get a second chance to make money. Don't think this is something for nothing, the cost is factored into the price so you may be paying a lot for the privelege. IG make prices on bungee commodities, FX and indices. 

There is a nice little chart on the IG Index site that explains it visually.

 http://www.igindex.co.uk/spread-betting/bungees.html

Author: cmg
Jun 24, 2008
Anyone heard of Gosling investments in Ireland? Are they legit? Does cold calling trying to sell fixture trading software sound above board? Is Fixture trading risky?

ANSWER 24th June 2008

I probably know as much as you. They seem to require a joining fee of nearly £250 for some software to enable you to do Fixtures Trading. Which is I suppose betting on sports' fixtures. I wouldn't part with my hard earned cash until I knew more about it, and I cannot see why these people cannot explain it before they get the money as most financial service providers do. Furthermore it is not really relevant to this site. However if this company or one of their clients, or anyone else would like to sbmit an article explaining Fixture Trading then we will publish it. Sorry!

Author: Bilbobraggins
Jun 21, 2008
Please can you advise me which online UK brokers offer the facility to sell short?

ANSWER 21/06/08

Well, firstly most traditional UK brokers won't allow you to go short, unless you are paying them so much commission they wouldn't want to risk losing you. This is for a variety of reasons, one being that the major clearing house won't allow it. (Capital requirement and risk management).

Why not trade CFDs? Or is that what you meant. If so I would say they will all let you go short. City Equity, IG Cantors.

If I have missed your point here please contact us again. 

Author: Sam
Jun 20, 2008
When I deal in CFDs I get charged 20 basis points each way. Exactly what are basis points and how are they calculated?

This is very strange, because I was thinking about this just last night. 20 basis points is 0.2% which is probably about right for a CFD. I am not sure why CFD and Spreadbetting providers use this terminology. I think it should refer to the movement or change in a percentage. So if you reduced your commission from 0.25% to 0.2% it would be a change of five basis points.

To summarize a basis point is 1/100th of 1% 

Author: Ray
Jun 12, 2008
I thought I read something about Exchange Traded CFDs. What are they?

ANSWER 12/06/2008

Yes, the plot thickens! I assume you know what a CFD is? Contract For Difference. In the UK, at least, CFDs are traded OTC (Over The Counter). The CFD provider transacts your order to buy or sell shares in the market. He charges you a small commission, takes margin from you and provides the rest of the finance in exchange for daily interest. Slightly different if you are selling short, but you get the picture. Now I believe the LSE is thinking of  setting up a competitive system, initially in the FTSE100 companies, whereby CFDs will be quoted in the market, the price including margin and financing. I suppose a bit like ETFs. The LSE is holding talks with prospective "partners", presumably Market Makers but have not yet said when trading is likely to commence. I suppose they are trying to keep business that otherwise is going to the OTC boys and other European competitors. Under the new MiFID rules Banks and Brokers are not obliged to use only exchanges to trade (since November 1st last year) and this is prompting the emergence of new systems. Incidently,  exchange traded CFDs can already be traded on the ASX (Australian Stock Exchange). 

Author: ANNA KLUGE
Jun 12, 2008
I used to trade online and some time ago I bought 900 stocks of CRYO. Like a month or a little more this CRYO COR announced that Boston Scientificcompleted its adquisition of CRYO COR (CRYO). I received a letter asking if I wanted to sell my stocks, and I answered that NO. I called to the people of Scot Trade and told them that I did not wanted to sell; yesterday I saw through my internet account that my shares were sold at a $1,35 per share. Is this kind of thing legal? How if I send the letter sayin NO to the sell proposition? How can they just pay the prize that they want? I bought this shares three years ago at almost $7.00, now that the company has a product that it is pending for the FDA approbal, and that worked with the money of all the shareholders, do that? So a company can do with your money wathever they want? and there is nobody that protect us? (the shareholders?) where can I write about this abuse? Thanks

ANSWER 11/06/08

It would appear that there was a cash tender offer of $1.35;

8-K SEC Filing, filed by CRYOCOR INC on 4/17/2008

The acquisition, which has been approved by the Board of Directors of CryoCor,
is structured as a cash tender offer. The parties have agreed to commence the
tender offer within the next 10 business days, followed by a second-step merger
in which any untendered CryoCor shares would be converted into the right to
receive the same cash price per share as shareholders who tendered in the tender
offer. Both the tender offer and the merger are subject to terms and conditions
detailed in the merger agreement. The merger is expected to close this quarter.

Reading this it would appear that Scot Trade should not have tendered your shares if you did not agree to, or request, that. Unless there has subsequently been some sort of compulsory order, your shares should just have been converted into the right to receive the cash. If you look on the Cryocor website you will find some contact numbers for Investor relations. I would talk to them and find out what the options were and are now and then ask Scot Trade why they accepted the offer. However, I am not sure you are going to get anywhere as the shares last traded at around $1.35, so I cannot see if there would have been any advantage by not accepting the cash offer.In fact Scot Trade would undoubtably say they acted in your best interests. I know it is annoying, but I am afraid the ordinary shareholder always gets the raw end of the deal. 

Author: Darron
Jun 11, 2008
Can you give me the name of an ETF that tracks physical silver

ANSWER 11th JUNE 2008

The one we follow is ETF SECURITIES: ETFS Physical Silver. They are quoted in London as PHAG/L (US$) and PHSP/L (GBP). Current prices are US$16.61-16.66 and 846.00-851.75p respectively.

Author: Steve
Jun 9, 2008
Please can you advise if there is a etf for UK Natural Gas (NBP)?

ANSWER

I don't think there is. As you probably know there is a UK Natural Gas Futures contract, through which physical delivery takes place at the National Balancing Point (NBP). I can only suggest you have a look at www.theice.com who make a market in these futures contracts.

Author: Stan Lee
Jun 7, 2008
I am trying to find a price for SYNGENTA CREST DEPOSITORY INTERESTS I have seen a price around CHF327 on a Google website and a price of around 65 (currency not stated) on a Yahoo website. Confusing

AMENDED ANSWER

Syngenta, which you probably got through Astra Zeneca are listed on the NY Stock Exchange (SYT) and VIRT-X (SYNN.VX)

The ones listed on NYSE are ADSs(Authorised Depositary Shares) and look like each ADS represents one fifth of a share.So the price per share is 327 Swiss Francs, which is about £163

The prices are currently US$63.52 (ADSs) and 327 Swiss Francs (CDIs. The best sites to find prices are finance.yahoo.com or www.syngenta.com (investor relations) I expect your shares are held as CDIs by Equiniti (Syngenta still have them as Lloyds Registrars). If you have your own broker the shares could be transferred to their Nominees, but they must be held in Crest so you cannot have a certificate. I expect Equiniti have a dealing facility for these shares. Give them a ring on Tel: +44 (0)870 600 3956

Web Site: www.lloydstsb-registrars.co.uk which links to:
http://www.equiniti.com/

Hope this helps but do not hesitate to come back if any other questions.  

Author: Alan
Jun 1, 2008
I live in Australia and have shares in a company listed on the AIM. I wish to be able to buy and sell shares on the AIM but I do not have a UK bank account. Can I buy and sell shares through your brokerage service and settle using an Australian bank account?

ANSWER 

On the face of it this should not be a problem. Please contact me on our contact page.

Author: Alistair
May 29, 2008
Can you tell me the latest price in DENBY INVESTMENT (UK) PLC, as I can't find it anywhere?

ANSWER

I do not think Denby is listed, therefore no price. I believe these shares came out of Atlantic Caspian Resources, an oil exploration company chaired by Cedric Brown (famous for being one of the original "fat cats" while CEO of British Gas). Denby (possibly Cyprus registered) was set up to buy Atlantic's debt. Creditors were offered shares in lieu of money they were owed. The only address I can find for a Denby Investment (UK) Plc is 264-268 Upper Fourth Street, Central Milton Keynes, MK9 1DP Is there any address on your share certificate? Going by the sorry state of affairs at Atlantic I would not think Denby shares are worth anything.

Author: Anthony
May 22, 2008
Dear Sir, I have UK Index tracker Virgin PEP and looking to improve performance and reduce charges. Please advice. With kind regards AB

If it is a true tracker then you cannot improve the performance, unless I misunderstand your question. A tracker should just track the particular index up and down with very little variance. They should be inexpensive because they are passive funds (not managed). The alternative, which I am sure will be cheaper than Virgin (!) is an ETF, such as Barclays iShares FTSE100. Like any other share they are purchased in the market and they could be ISA'd. I hope this answers your questions but if not please email me.

Author: david from gourock
May 21, 2008
I hold shares in Dominion Pacific ( might have previously been Pacific Media PLC. Can you give me any information about them and are they still trading? Are the shares of any value.?

ANSWER

Pacific Media change name to Responzetv (ticker RETV.L 23-26p) There must have been some consolidation here because I can remember Pacific Media being a fraction of a penny. Registrars are Capita 0870 162 3100 check with them. Company telephone +61 400 83 5555 Website: www.responzetvplc.com/main.php

Dominion Pacific (nohing to do with above). Was supposed to list on Plus Markets but seems to have been pulled (14.5.08). Try Judd Ferrer 01636 626 582 or Gerry Desler 001 352 255 1423 at Dominion.

Author: ADMINISTRATOR
May 21, 2008

Further to our answer on the RBS rights issue, this is the timetable.

14/5/08 Prospectus issued and EGM.

15/5/08 Ex-Rights

6/6/08 Final date for call to be paid

9/6/08 Dealing fully paid

ok

Author: Mark
May 19, 2008
I have read about something called a Bungee bet. What is it?

ANSWER

This is an innovation from IG Index (Spread Betting). Basically you select a stop-loss (for the day). If the market goes below this level your total loss can never exceed that level. But your bet still continues! If the market later recovers you can sell at a profit or a reduced loss. Of course you have to pay for the privelege.

Author: Sally
May 15, 2008
I have a Share Certificate dated December 1989 for 100 Abbey National shares valued at 10pence each. I live in Italy and won't be returning to the UK until August, but I would like to sell the shares as soon as possible. How can I do this please? (I have been receiving share dividends over the years)

ANSWER

The certificate is of no value having been replaced by a holding in Banco Santander. Your holding will now be held electronically in the form of CDIs. 

Please look in our FAQ page. There is a question from Viv (Q5) regarding your situation. The answer explains what happened and there is a telephone contact number. From overseas the number is +44 (0) 121 415 7188

Author: Darron
May 14, 2008
When does the Royal Bank of Scotland go Ex rights? Also HBOS?

ANSWER

The Royal Bank of Scotland EGM was today (14/5/08) and they go ex-rights tomorrow morning at 8.00

The HBOS rights prospectus will not go out until June sometime, then there needs to be the EGM to approve so it looks like sometime in July.

Author: Zeroji
May 10, 2008
I am interested in forex trading but need to learn the basics. I subscribed for information on the web and am now constantly bombarded with information about various strategies, tool and systems, and special ‘sell’ offers to me. These make various claims, for example, turning $3500 sum in an account to $145000 in two years. Although I am interested to take a dive, I fear of being ripped off. I am sceptical and very cautious. I also suffer information overload and am getting more confused. Can it help me with your advice, comments or recommendation? Are you able to recommend system (book, articles or course) or a good website?

ANSWER 

This is not really our area of expertise. Like any sort of trading it is best to start simple and find a good dealer. I suggest you start with something you feel comfortable with. I would start with £/US$. This can be spot, near future or far future. Get an account with IG Index then slowly progress using them for advice. This is spread betting. Don't get involved with FX traders that promise the earth. You will put up margin, then to secure your capital you may have to put up more margin until you are in too deep. Work out on a spread sheet what you think will happen to your positions on a best & worst case scenario and calculate your potential gain or loss. Make sure you know all the rules before you put your money up.

Author: Lisa Wynne
May 6, 2008
I had 24,596 shares in Pipex and were looking to hold onto them. Their value last summer was around £2500. On looking at my portfolio I see I now have 24,596 shares in Freedom 4 Comms and the value is now £380!! I seem to have lost over £2000. My online broker has been very unhelpful in explaining what happened. Can anyone help? Thanks

Unfortunately Pipex, the first commercial ISP in the UK, showed a lot of promise but couldn't come up with the goods in terms of profit. Originally having three divisions; Broadband ISP, Web Hosting, and the WiMAX operation, they sold the broadband division to Tiscali and the hosting side to Host Europe leaving just WiMAX, in which Intel has invested a lot of money. Pipex recently changed it's name to Freedom 4 Communications. In return for the sale of the hosting division shareholders in Freedom were offered between 10p-11p under a tender offer for up to 58% of their shares. Your broker should have advised you to tender your shares for the minimum of 10p. Unless of course you are classified as execution only. If your shares are held in Nominees you should have been told, at least , about this offer so that you could make your own decision.

Author: viv
May 2, 2008
my 19 year old daughter has 895 share in what was Abbey National - Banco Santander. What is the easiest / quickest way to sell them for a good price?

ANSWER.

These shares are more than likely held electronically by Abbey National. You should have an Entitlement Statement. If so see below (taken from Abbey website) and give them a ring and use their share dealing service. As for a good price, you must appreciate that as their service is probably not instantaneous, like a Stockbrokers, it will be the quoted price at the actual time they deal. Alternatively you could transfer the shares out of their Depository and into one of your choice and then pick your own time when to sell. But for a one off trade as I imagine this will be, I think it would easier to deal with Abbey.   

You can call on 0870 532 9430
Overseas +44 (0) 121 415 7188

Please quote your holder reference number. This can be found on your Entitlement Statement or last Dividend Stat

Author: horace@hgoodenough.wanadoo.co.uk
Apr 29, 2008
Do you have any comments on the book by Mark Shipman Title Big money little effort and his long term investment system. Do you reccommend Tracker funds or ETFs

I have not read the book but the author seems to have excellent credentials. I don't think I would believe the title, but you may pick up alot of tips as to the working of the markets. It seems reasonably lengthy therefore value for money. See review on link below.

http://business.timesonline.co.uk/tol/business/money/investment/article3735226.ece

ETFs are trackers. They are nearly always cheaper than non-ETF trackers and have the advantage of being tradeable at any time of the trading day. They also could be sold short.

Author: administrator
Apr 28, 2008
How can i get the whole info of the share market(whether up or down)?

I am not sure exactly what you mean by the whole market. The most widely used reference is the FTSE 100, which, as you probably know, consists of the top 100 UK companies by market capitilisation.

There is an index known as the FTSE-all share. This is made up of about 90% of the UK market.

If this does not answer your question please let us know.

Author: administrator
Apr 28, 2008
Why have you not listed the ETFs provided by ETF Securities Ld, as this company seems to be a very large provider of ETFs in UK and US?

We have now included a Global ETF List in our articles section.

Author: administrator
Apr 28, 2008
Would you please be able to let me know what happened to shares held in Drayton Consolidated Trust plc and the Colne Valley Water Company?

Drayton Dissolved on 12/9/97

Colne Valley merged with Three Valleys Water, which is now a subsidiary of Compagnie General Des Eaux.

Author: administrator
Apr 28, 2008
I hold a share certificate for 5000 Greenwich Resources which was purchased in 1997. Does this still have any value as the company appears to have been de-listed or taken over?

GREENWICH RESOURCES became SCARBOROUGH MINERALS
SCARBOROUGH were taken over by MINERAL SECURITIES

MINERAK+L SECURITIES are quoted on AIM (MXX.L) and ASX (NIP.ASX) Price 69-73pence.

See ADVFN link:
www.advfn.com/quote_Scarborough-Min_LSE_SCRB

The company itself is a resource investment house and has interests in Gold in Greece, Gold & Zinc in Australia, Copper in Kazakhstan and Gold in Uzbekistan.
CEO : Keith Liddell Telephone 0207 152 6230
Website: mineralsecurities.com.au

We suggest that you write to Computershare (company registrars) enclosing a copy of the share certificate and ask them how many Mineral Securites shares you will have and how you can get your certificate converted (The amount of shares may not convert to the origional amount (5000), in fact we have calculated it to be roughly 133 shares).

Author: administrator
Apr 28, 2008
I have some iSoft shares. I believe there has been a bid from an Australian company called IBA Health. Have you any more details about this bid?

Yes, IBA Health (IBA.AX), Australia´s largest listed eHealth company have made a bid for iSoft (IOT.L).

You can read the full story on our notices page.

Author: administrator
Apr 28, 2008
I had some shares in Talisman House which I think became Seymour Pierce. I notice there is a stockbroker called Seymour Pierce, is this the same company?

Unfortunately this is not the same company. The history of it is fairly complicated, but we have attempted to clarify the situation in our articles section.

Author: administrator
Apr 28, 2008
I am holding shares in Avanti Screenmedia and have noticed the share price has fallen today (16.4.07) by 223p to 35p. What has happened?

Dont panic; Avanti has demerged its satellite business, effective today. You will receive one share in Avanti Screenmedia (35p) and one Avanti Communications (241p).

Author: administrator
Apr 28, 2008
What are share warrants?

Share warrants are not shares but are often listed along with the company's shares.

They give the owner the right, but not the obligation, to buy shares in the company using the warrants on a fixed date(s), at a fixed price.

If the warrants are quoted they can be bought and sold the same as shares.

Their value is calculated by comparing the excercise price against the market price of the underlying shares.

There is also the value of the gearing element, but note that warrants do not pay dividends.

Author: administrator
Apr 28, 2008
I have been offered shares in a company called Petro Caspian. Do you know anything about this company?

Unfortunately we do not have any background information on this company at present. We have heard of people being offered stock and we are making enquiries which will hopefully shed some light on the company.

Visit our notices section to follow this matter. Or contact us if you have any more information.

Author: administrator
Apr 28, 2008
I want to buy shares in T.I. Automotive, how do I go about this?

Unfortunately T.I. Automotive is a private company and therefore the shares cannot be traded. The company used to be listed on the London Stock Exchange but was taken over by Smiths Industries. The shares were demerged from Smiths but remained private. It is a profitable company and one day may come to the market.

Author: administrator
Apr 28, 2008
Can you please explain the term "covered Warrants"?

A covered warrant is similar to an option except they cover more financial instruments. As well as shares there are Covered warrants for indices, currencies and metals.

You can find a more detailed explanation in our articles section.

Author: administrator
Apr 28, 2008
Would you explain the timetable of dividend payments?

This is explained in full, in our articles section.

Author: administrator
Apr 28, 2008
I am interested in a company called Arthro Kinetics which was scheduled to come to the AIM market on 21st Feb. I cannot find it listed?

As far as we know your information was correct. The Brokers are Nomura Code Securities Limited. We now understand these shares will start trading on 2nd March.

Author: administrator
Apr 28, 2008
I have noticed that the share price on Boots has gone up 26p and it is Ex the special dividend, is this correct?

Yes that is both correct and not correct! There has also been a consolidation. For every 58 shares you get 39 shares. The £2 dividend is based on the old shares. So in effect the shares are about 15p down.

Author: administrator
Apr 28, 2008
How do I apply for shares in QinetiQ?

There is a list of brokers with whom y6ou can register your interest on the HOME page of the APCIMS website: www.apcims.co.uk.

Author: administrator
Apr 28, 2008
What are ADSs and ADRs?

American Depositary Shares and American Depositary Receipts, often thought to be the same thing. ADSs are issued under deposit agreement that represents an underling security in the issuer`s home country.
ADRs represent a bundle of ADSs.

Author: administrator
Apr 28, 2008
I have some shares in Syngenta but I have not got a certificate. Why is this?

Syngenta, which was demerged from AstraZeneca, issued shares in the form of CDIs(Crest Depositary Interests). These shares have to be held electronically within CREST, usually by a global custodian. Your shares will undoubtably be held by LloydsTsb Corporate Nominees. They can either be transferred to your own Nominee provider (cost £23.50) or sold through Lloyds.

Syngenta is the world`s largest agribusiness company and is one of the first publicly quoted companies in the sector. The shares are traded in Zurich and New York.