Free Share Challenge

[Lewylewylewy]

I would like to play a game...

Each player starts off with $10k (real money) to invest in the NZX or ASX. The aim is to buy shares then sell them at a higher price, but only sell enough to recover your $10k initial investment. For example, I buy 9970 shares at a dollar each, less ASBs $30 trading fee. I then sell 9833 shares for $1.02 a share to recover $10030 ($30 of which goes to the broker to take me back to $10k). I now have 13 "free" shares.

In the event that you can't recover your $10k and create free shares due to minimum holding requirements, you may recover more than $10k and add this to your next purchase.

The aim of the game is to accumulate $1000 worth of free shares. The first to reach the target wins.

Who's in?

[James108]

Sounds like a good way to be classified as a trader by IRD?

[LAC]

How do we track this? Open a NZX test/game acc?

[Harvey Specter]

It's also a great way to piss off companies and increase their admin costs. Who would want to hold only 13 shares.

[Jantar]

I would like to play a game...

Each player starts off with $10k (real money) to invest in the NZX or ASX. The aim is to buy shares then sell them at a higher price, but only sell enough to recover your $10k initial investment. For example, I buy 9970 shares at a dollar each, less ASBs $30 trading fee. I then sell 9833 shares for $1.02 a share to recover $10030 ($30 of which goes to the broker to take me back to $10k). I now have 13 "free" shares.

...


It's also a great way to piss off companies and increase their admin costs. Who would want to hold only 13 shares.
I do think that is a typo. it should have been 137 shares.

[Lewylewylewy]

Ha-ha, yeah, there are all kinds of benefits to the game...

Ok, perhaps we just do it on NZX virtual? Shame though as it's like playing poker without real money.

[Harvey Specter]

I do think that is a typo. it should have been 137 shares.
Still less than a marketable parcel. Wolf a broker even let you sell that few should you even want to.
The company could compulsory acquire ten if they wanted.

[Jantar]

Still less than a marketable parcel. Wolf a broker even let you sell that few should you even want to.
The company could compulsory acquire ten if they wanted.
According to ANZ Securities the minimum parcel is generally around $500 worth of shares, so that 137 shares would be well below the minimum.

[pak]

Minimum holding depends on the share price with some exceptions. Follow the link.
https://www.asbsecurities.co.nz/section240.asp
If you book in an order and leave too little amount of shares in, you will get a call from a broker informing you of the minimum holdings. I have tested this ha ha.
Generally speaking it's $250-500 for nzx an $500 for asx plus brokerage.

[Lewylewylewy]

I think everyone's getting tangled up in the example.

Maybe we forget it, there's no interest :)