I'm linking to my Herald on Sunday column which is viewable to all as of writing. It's about the move by car auction house Turners to simulcast its live auctions on the internet using audio and video feeds.
Good idea I say, though I doubt the ability of old-world players like Turners and Trade & Exchange to catch up with Trademe which on another note, seemed a little bemused at suggestions by certain individuals in the IT sector that it could become an informal type of market for the trading of shares.
I have to agree with John Key on this one. I can understand the frustration of our tiny IT players in their attempts to get access to capital, but Trademe isn't the place for shares to be swapping hands.
Said Key: "There's a vast world of difference between buying a second-hand motor mower and buying a share script, and I would have thought Dr Cullen would have realised that."
After all, the alternative market (AX) was set up by the NZX for the sole aim of creating a market for the trade of shares in small-cap companies.
Having covered New Zealand's pitiful listed-IT economy in the aftermath of the dotcom collapse, I came to realise that most of the investors in IT Capital, Commsoft, Advantage Group and most of the other companies that were bleeding cash, didn't know much about what they were investing in. There wasn't enough information supplied to them and many of them were sucked in by the hype of company directors and often, regretably, the media.
The NZX has done a pretty good job in cleaning up the sharemarket here and bringing it up to the standards that have been introduced overseas in the wake of Enron, WorldCom et al. There's nothing wrong with the AX and it will only become more effective as it achieves more scale.
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