AFTER choosing a stock the next decision is to find the right stockbroker to handle the trades.
For the first-time buyer, this can be a difficult choice. The best advice is to ring around to find out who appears to be the most competitive and accessible. Also, check the broker is authorised by the Securities and Futures Commission, the territory's chief financial watchdog.
The number of shares an individual might buy depends on personal preference and the rate of subscription for the launch. A broker expecting a new issue to be oversubscribed will generally recommend the investor submit extra subscription forms.
For example, if an investor wants 10,000 shares and the broker expects a stock to be oversubscribed 10 times, then the investor might subscribe for 100,000 shares.
Usually, the investor will receive a proportional number of shares depending on the rate of over-subscription.
Most retail investors borrow money from the broker to purchase new issues. Called 'buying on the margin', investors generally must put down 10 to 20 per cent of the funds they wish to invest.
