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What restrictions are there on share trading?

Wednesday 23rd January 2002

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Q: Are there any restrictions on share trading? Are international students allowed to take part in trading? What is the minimum investment required?

A: I am not sure what you mean by 'restrictions' - perhaps you are referring to the fact that you must purchase a minimum parcel. There can also be limitations on who can own shares sometimes. For example, when Air NZ shares were divided into two classes - A and B - you had to be a NZ resident to own AIRVA shares.

International students can buy shares. If you have the funds to purchase shares then there are very few restrictions on ownership, but the Inland Revenue Department may be interested and you may have to file tax returns.

The minimum investment depends upon what you want to buy. For example, the minimum parcel of telecom shares is 50. So if TEL is trading at $6.00, then the minimum investment is 50 x $6.00 + brokerage, which will around $630.

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