Monday, December 1, 2008

Pay thousands and owe millions

This is what I'm afraid of when buying shares these days...
You can't just believe in a corporate offer anymore... like managed fund, they always try to hide the fees eventho they'll charge you an arm and a leg >,<

Read this article

In that article, the investors can buy large slabs of the company for small amounts of change. The investors can only pay 0.1 cent (yes, it is not a typo!) for a share. Doesn't it sound too good to be true? Maybe... but it turned out to be this kind of agreement:

For every security purchased for 0.1 cent, security holders still have to fund the next two $1 instalments in the company

Apart from the appearance of two retail shareholders with a collective 20 per cent stake worth about $80,000 with a further $160 million of obligations, BrisConnections has found itself with several highly distressed security holders on its register.

Man... I'd feel the same if I were them... I think it's a lesson for me too... coz I don't normally read the whole document when I bought shares >,<... should I call my self a risk-lover? or just a stupid investor? -___-

Anyway, that's something important to share with all of you...

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