Wednesday 23rd January 2002
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Q: New Zealand now has a secondary board for companies waiting to list on the NZSE main board. What is the liquidity of companies on this board and do I have a realistic chance of purchasing shares?
A: Brokers can request a company's inclusion to the secondary board - or Unlisted Securities Facility, as it is known by the NZSE - so that a market can be created in that company's stock. If there are quotes (a buy price and a sell price) then you stand a very good chance of being able to buy shares in a secondary board company - as long as you are prepared to buy 'at market'. If you have a limit order and want to wait for the price to come down to your limit, then you may have a very long wait.
Some companies have a liquid and active market on the secondary board while other companies are often illiquid. Remember that companies traded on the secondary board are not bound by NZSE Listing Rules.
Have a look at ShareChat's Capital Markets page for further information.
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