Relook trading amounts on low-priced stocks

A few days ago, I put up 9,000 warrants for sale on the Singapore Exchange, but only 100 units were transacted at the end of the trading day.

As the price was only 0.088 cent, my proceeds amounted to $8.80.

I ended up having to pay the broking firm $17.95, after a brokerage fee of $25 and a 7 per cent goods and services tax were deducted from my proceeds.

While untenable, such cases are not uncommon. They are the result of allowing shares and warrants with very low prices to be traded at a minimum of 100 units.

SGX should fix this quirk in the stock trading system and disallow such transactions from going through.

Sia Cheong Yew

A version of this article appeared in the print edition of The Straits Times on December 30, 2016, with the headline 'Relook trading amounts on low-priced stocks'. Print Edition | Subscribe