1/22/2015
SGX – Smaller board lot of 100 shares
Who really benefits from this change? My grandchildren are too young to open an account to buy shares using their angpow money. Many youngsters are also too young to open an account to buy shares with their pocket money. Maybe the aunties could save a few dollars from their marketing budget to buy 100 shares of penny stocks. How would it improve market liquidity and volumes?
I can only see the computer trading ticking 100 shares at a time instead of 1,000 shares at a time. Looks like the computer traders will make a lot of savings as their cost is going to be down by 90%, from buying 1000 shares to buying 100 shares at a time.
Is this the real reason for cutting down the board lot size to 100 shares? Any rocket scientist or mathematician wants to try to figure out this complex and complicated change? Who are the real beneficiaries of this change? And who is going to make more profits from this change?
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9 comments:
Next week, I planned to open a
trading account for my young son
and give him few hundreds to play
play since the lot size is now
100 shares.
Good Idea?
'Boh hay he ah ho' in Hokkien/Teochew Dialects, means shrimps will do whence fishes are available.
Maybe it is a sign of drought(running out of business),
so make smaller portion for transaction. At least the small players can afford to gamble to support the businesses of the big
bosses.
patriot
Correction to my quote;
it should read 'Boh he, hay ah ho'.
My apology.
patriot
Wow, lots of mistakes in a short comment, must be aging problem.
'Whence fishes are available' should read 'Whence fishes are NOT available.
patriot
patriot 10.43/45am/51 pls note.....
still young lah....not to worry.....
you are correct......
no other better choice lah......
"BIG small also EAT"
cheers.....
So that can benefit by volume of trades lah.
If each of the 5M or so population in Sinkieland give me only ten cents, I would instantly become a half millionaire already.
If public transport fare is increased by only 5 cents per trip person and given how overcrowded the buses and MRT are, u can imagine how much more money the transport companies can collect from just one trip alone.
Hence same logic applies for SGX lah, assuming of course more people start to trade lah, which unlike public transport, may not be the case because share trading is not a daily affair for people, u know.
All these exchanges are a form of gambling.
“Heavy physical work, the care of home and children, petty quarrels with neighbors, films, football, beer, and above all, gambling filled up the horizon of their minds. To keep them in control was not difficult…. All that was required of them was a primitive patriotism which could be appealed to whenever it was necessary to make them accept longer working hours or shorter rations. And when they become discontented, as they sometimes did, their discontentment led nowhere, because being without general ideas, they could only focus it on petty specific grievances.”
– George Orwell, Nineteen Eighty-Four
George Orwell is one of the world greatest prophet.
This is called training.
When newbie, start small. But small doesn't mean you buy the penny stocks. You still can buy blue chips, albeit in lesser volume in 100,200, 300 shares.
When you have established good track record, then u trade big.
If one cant keep track of what one does when trading small or even lose money at the end of year, better not trade big.
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