Hi, Andrew.

[some bits deleted]

AF> FM> I *am* my broker! 

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

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

AF>Why was the price for the 86 lower than the price for the 800?
AF>Were they sold at a different time, or is there a lower demand
AF>for odd-lots? In any event, we agree on my substantive point:
AF>* if odd-lots sold with marketable parcel, no minimum brokerage
AF>fee (e.g. $50) applies for odd-lot

It's a rule of the stock exchange, and it happens automatically
whenever you trade a parcel which is not a multiple of a marketable
parcel. The discount (if you're selling) or premium (buying) is
specified in the rule, and depends on the share price. The odd lot is
automatically sold (and must be sold) to the Odd Lot Broker, who of
course puts them all together into marketable parcels and sells back to
the market, earning the regulated discount/premium for his trouble and
risk.

AF> AF>This message is written in a purely personal capacity. I am not
AF> AF>making any recommendation as to brokers. I do not claim to have
AF> AF>any expertise in the matters discussed about.

AF>  Mandatory disclaimer?

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

True! :-) In my case, I need to be careful that I remain within the
terms of my licence, which of course never envisaged anything like a
public forum conducted electronically, such as this echo. If at times I
seem overly reticent, that's the reason. I see no problem in talking
about technical questions such as our discussion above.

Regards, FIM.

 * * Typing all of your message in capitals is SHOUTING!
@EOT:

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