Re: Brisconnections shareholders - financial ruin
Absolutely Julia,
Just to proove how easy it is for ANYONE who has no understanding of stocks & shares can get hooked up in this Fraud.
I cant put my mind to anything else on this earth that with a $500 investment could wind you up with a $1M debt.... without any intention.
yes people should do research ect, I am one that didnt look into it.
However the fact it has been allowed to happen without significant warning and double checking is wrong. Regardless of whos to blame.
The Fact that even after all the publicity people are STILL getting caught up in this, and the the culprits still getting away with it!!
If you are going to make unsubstantiated allegations, such as those above, you really should be getting good legal advice. Would suggest you seek advice from one of the top legal firms.
It is pure supposition on your part that all persons buying BCSCA are not aware of the nature of the share or the attached laibility. While it may be true of some it is not necesarily true of all. Some people actually undertake a modicum of research before purchasing shares.
You need to maintain a level of objectivity, including focussing on relevant matters and facts rather than emotions or wild allegations.
Try taking at least a minimum level of responsibility for your actions rather than trying to blame other parites or look for excuses. You have already admitted that you didn't undertake any research related to BCSCA. The Comsec basic service provides a no frills non-advisory service, which places some emphasis and responsibility back on yourself to do some basic research.
This appears to be a situation that neither the ASX or ASIC envisioned would occur in the equities market. In that, naive investors/traders would blindly buy shares in the market, with little or no research or even a basic understanding of the codes used and their implications. Even the ASA uses the term 'naive investors'.
The situation is exacerbated due to no active market for the concerned share, which effectively traps the shareholders wanting to sell their shares. This has similarities to day traders caught in the market when a stock goes into a trading halt or is suspended.
In terms of your allegation of fraud.
If you consider that BCS issued an IPO in accordance with the relevant laws, regulations and approvals, on what basis has fraud been committed on its part?
The online brokers provided a service that they provide every trading day of the week, where buyers and sellers enter their orders and are automatically matched via the ITS system, on what basis has fraud been committed on their part?
Maybe it was the sellers who assumed that the buyers actually understood what a contributing share was and that they (the buyers) knew what liabilities they were taking on. Maybe you think the sellers perpetrated the fraud.
There is a distinct difference between alleging improper or non-disclosure of pertinent facts, as opposed to an allegation of fraud.
The information that you required to make an informed decision was actually available on the Comsec site. While it may not have been readily apparent from the 'deal ticket' it was available under the 'Announcement Section' of the site. An obvious announcement to look at is entitled 'Investor Presentation'.
What is not clear, of the affected shareholders using online brokers that displayed '$1 Paid $2 Unpaid', is how many of them still went ahead and purchased the shares anyway, without understanding the implications.
What is interesting about this situation is how many of the buyers actually knew about the liability or did not know about the liability, but were speculating/gambling on a 'dead-cat bounce' or increase in share price to make some fast dollars. They never realised that the situation could occur where the market in the share could dry up and they would not be able to sell their shares, ultimately becoming trapped.
Some of the speculators/gamblers caught in this manner will jump on the bandwagon, of those who actually made a naive mistake, hoping that any ensuing legal action or negotiations may get them off the hook.
If the ASA, ASX, ASIC, BCS or its underwriters cannot work out a way forward that is equitable to all affected parties and it subsequently goes to court in any manner or form it will be interesting, as to how it proceeds and the final outcome.
If 'caveat emptor' is considered to apply, then this will be an expensive mistake for the affected parties.
I have a split view on this situation.
For those naive investors who made an error through lack of research or market knowledge, I sympathise with your plight and wish you well, but there are no guarantees as to how this will pan out in the end.
For those speculators/gamblers that were trying to make a fast dollar and have been trapped (a market risk has been realised) due to their greed, I have no sympathy at all.