Hi, Garry.

GN> Somewhere in the Ether, Paul Edwards uttered this to
GN> Garry Norton about Buying SHares

Let me throw in a comment or two to your conversation with Paul...

GN>  SHAW have been merging with other companies over the last
GN>  couple of years, I know longer know what they are like.

Totally different, I would say. There are at least 3 firms that I'm
aware of that have over the years merged into the predecessor of SHAW.
That was BOS (Bank of Singapore) Stockbroking, which renamed to SHAW at
the beginning of last year and is now totally owned my management.

That has generated the biggest change, IMHO. Some of the restrictions
which our bank parent required have been able to be removed.

GN>  Brokers:
GN>  Basically a broker makes a dollar regardless if you buy a good
GN>  stock or not.  In a purely cynical light, it could be said the
GN>  broker can do better if you buy a dud stock as he may get to
GN>  make a dollar when you sell that dud stock!

It doesn't work like that, because what you're after from clients is
*continuing* business. You're not likely to get that if you keep giving
him dud stocks! :-)

A broker is
GN>  basically a sales person and will sell you what you want to
GN>  buy.

And risk going to jail, being fined or having your licence revoked (so
you lose your job). The Corporations Law, and ASX business rules, are
very strict about giving advice to clients. Of course, what you say is
true in a sense, that if a client wants to buy (or sell) something,
we'll certainly do the trade for him.

If you are spending your own hard-earned money, then you
GN>  should do the homework research and use the broker as a
GN>  sounding board and as the purchasing agent.

Agreed, although the broker can be the source of some of that research.

Unless money is no
GN>  object, the broker shouldn't make the decisions for you.

Some clients do give their broker that authority, we tend to discourage
it as you have to be *very* careful about the investment decisions,
document everything, etc.

Let's
GN>  face it, if the broker could get it right and make a fortune,
GN>  would he continue to work for a living!

Sure, I'd be happy to make a squillion and stop working!

Regards, FIM.

 * * Mac: Computer with training wheels. 
@EOT:

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