* Quoting from "Frank Malcolm to Andrew Freeman on 24 Nov 94  07:09" *

 FM> Hi, Andrew.
 
 AF> AF> with odd lot element (e.g. 11001 Westpac shares) without needing
 AF> AF> to pay premium on odd lot element.
 
 AF> FM> How can you do that? The odd-lot (1 in this case) will automatically
 AF> FM> be sold to the Odd Lot Broker at the regulated discount to the price
 AF> FM> the bulk were traded at, depending on the share price.
 
 AF>If sold seperately, yes. If sold as an add on to a marketable
 AF>parcel - possibly you are technically correct as to the
 AF>mechanical procedures which need to be gone though, but it will
 AF>not require big amount of additional brokerage or in the case of
 AF>Pont generally no additional brokerage, according to two
 AF>brokers I have discussed with. E.g. if you sold via Pont, $120
 AF>brokerage applies to selling 11001 Westpac shares (because it
 AF>would involve between $6000 and $120,000 worth of trade), or
 AF>around 2.5% of cost (minimum brokerage $60) if sold by a
 AF>non-discount broker I know of. Please check with your broker, if

 FM> I *am* my broker! 
 
 AF>s/he tells you I am wrong, check with Pont on (008) 252 134 (Ray
 AF>Ackerman) or Falkiner Collins and Co on (008) 331 307 (Norman
 AF>Falkiner Jnr). If I have misinterpreted the advice I have gained,
 AF>I will be interested to hear about it.

 FM> No, I think I misinterpreted your comment as referring to the share
 FM> price, not the brokerage. Most brokers will not charge extra for
 FM> selling the odd lots, including me, although if you sold only the
 FM> odd-lot portion you will probably be paying the minimum, which is
 FM> expensive. 
 FM> But even as part of a larger parcel, the odd-lot portion will be sold
 FM> at a lower price. A couple of days ago I sold 886 WBC for a client (the
 FM> 86 having been built up through DRPs) at $4.14. The 800 were done at
 FM> that price, the 86 at $4.04. Brokerage $75.

Why was the price for the 86 lower than the price for the 800?
Were they sold at a different time, or is there a lower demand
for odd-lots? In any event, we agree on my substantive point:
* if odd-lots sold with marketable parcel, no minimum brokerage
fee (e.g. $50) applies for odd-lot
...
 AF>This message is written in a purely personal capacity. I am not
 AF>making any recommendation as to brokers. I do not claim to have
 AF>any expertise in the matters discussed about.
 
  Mandatory disclaimer?

I am happy to enter such discussions, but would not want people
to rely on my advice. As you know, if one holds oneself out as an
expert in an area, whether one is paid for ones advice or not,
should someone else take ones advice there is greater potential
for them to take legal action against oneself than if one
disclaims any expertise. The danger is of course that in
disclaiming any expertise, one shows at least enough expertise to
disclaim. ;->

Andrew

--- GEcho 1.10+