Advisers should speak up for investor unfairness
The NZ Shareholders Association took issue with the placement last week, which diluted existing shareholdings and led to a stock-price fall.
NZ Shareholders Association chief executive Michael Midgley said it was unfair for the company to have used that method of capital raising, which he said should be only for emergencies, when a rights issue could have been completed in a month.
He said actions such as that shook the faith of investors in the sharemarket, and dented the confidence of new investors.
But he said a looming increase in roboadvice could leave more shareholders vulnerable, without a human adviser to turn to, to help them navigate these scenarios. Providers were already reporting an increase in interest in the stockmarket from young people priced out of the property market, he said. "The biggest problem is communication, getting the message out there."
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