Forum Archive Index - July 2000

["Wedde, John" <john.wedde@cit.ac.nz>]

Hi Sarah,
Sorry, but I must take issue with much of what you say here. Read my posting
yesterday on this.
There is no doubt  that demand and supply are critical in determining the
price of anything, be it a share in a company, a commodity or a piece of
antique furniture.
If demand exceeds supply then the price is highly likely to rise. The
converse of course also applies. This is 5th form Economics, and perhaps one
of the few utterances of economists that I believe totally. This belief is
backed up by several decades of personal business experience as well.
As far as the stock market is concerned, those with INSIDE knowledge as to
the state of play regarding relative supply and demand [market depth], ie
the NZSE brokers, are infinitely better placed to judge where the market is
heading and therefore  make more informed decisions about buying or selling
than anybody else.
No attempt  to explain a contrary view will ever convince me that this isn't
so.   
Cheers
John


                -----Original Message-----
                From:   Sarah Corkhill [mailto:sarah.corkhill@db.com]
                Sent:   Thursday, 6 July 2000 01:57
                To:     sharechat@sharechat.co.nz
                Subject:        [sharechat] NZSE Market Depth Petition

                Hi Warner,

                NZSE Members get  market depth & quote informtion from their
trading screens.
                Members pay a charge per month for each trading screen and
each enquiry screen and they
                pay per trade everytime a trade is matched.  Members don 't
pay for each individual quote or for
                every piece of information they look up on one of these
screens.
                Members do pay for information that is displayed on their
webpages if it is 'live' quotes and
                'live' company announcements.  If market depth becomes
available via the internet then members
                will have to pay to provide that servie to their clients as
well.  At this point in time members absorb
                the cost of providing live quotes to their clients and it is
available 'free' to clients with a log in in most
                cases.  If market depth information is made available via
the internet then it will be up to each
                broker whether or not they past this cost onto their
clients.

                Market depth is not inside information - it is information
that is available to brokers.
                Market depth is available to anyone that wants to spend any
length of time in their brokers office viewing
                an enquiry screen.  If market depth is made available via
the internet what it will not do is enable people to see which
                broker is bidding or offering the stock.  This sort of
information isn't available on the Australian market either.
                Market depth is not something that is being suppressed by
the NZSE to try and disadvantage investors.

                Remember that market depth is only an indication and not all
bids and offers are displayed at all times.
                Large orders are often left out so as not to scare the
market and if you've ever spend alot of time watching
                smaller Australian companies trading then you would have
noticed large,  often undisclosed, orders being
                added and removed without ever being filled which can be
very confusing when trying to get a 'feel' for demand
                in a particlar stock.

                Kind regards,

                Sarah




        
----------------------------------------------------------------------------
                http://www.sharechat.co.nz/          New Zealand's home for
market investors
                To remove yourself from this list, please use the form at
                http://www.sharechat.co.nz/forum.shtml.
######################################################################
This e-mail message has been scanned and cleared by MailMarshal 

######################################################################

----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.