The New Western Canadian Stock ExchangeBy William CatePublished May 1998[http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelco...
The New Western Canadian Stock Exchange By William Cate Published May 1998 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
Can three centers of stock fraud merge and create a reputable Stock Exchange? The Canadians say "yes." "Forbes" won't have the Vancouver Stock Exchange (VSE) to kick around any more. In 1989, "Forbes" called the VSE "The Scam Capital of the World." The name stuck. The VSE's reputation has made it impossible to sell VSE stocks anywhere in the World. Yet, the VSE is the cornerstone of the New Western Exchange.
The Alberta Stock Exchange (ASE) gave investors Bre-X, the biggest mining stock fraud in history. The ASE spearheaded the creation of the New Western Exchange.
The Canadian Dealers Network (CDN) is the third stooge joining the New Western Stock Exchange. The CDN is the Ontario Securities Commission's OTC cesspool.
The Toronto Stock Exchange (TSE) has 88% of the dollar value of shares traded in Canada. Recent regulatory changes moved the TSE away from listing resource stocks. The New Western Canadian Stock Exchange is betting that they will get the TSE speculators interested in resource stocks. To this end, the VSE is doing "Dog & Pony" Shows in Europe. They hope to recruit the faithful gold bugs back into their fold.
The Montreal Stock Exchange (MSE) has 10% of the dollar value of shares traded in Canada. A Decade ago, they were in competition with the TSE as Canada's leading Stock Exchange. In the past Decade, the quality of their listings has made them more of a competitor to the scam ridden VSE. I suspect they'll eventually bury the Western Exchange.
Here are some of the current obstacles that the New Western Canadian Stock Exchange must overcome. 1. They have 2% of the dollar value of shares traded in Canada. This isn't adequate to support the bureaucrats running the system. 2. Vancouver and Alberta are battling to be the physical location of the new stock exchange. Given the importance of "white collar" jobs in Canada, the loser isn't going to be happy. The proposal to spread the jobs into several cities won't work. Keep in mind that the New Western Exchange will be starting as a money-losing business. Spreading jobs increases costs. 3. They must delist at least the flagrant scams from the new stock exchange. This means the CDN will see most of its stocks delisted. The CDN brokers won't be happy. 4. Listing costs are lowest for CDN companies and highest for VSE companies. Currently, VSE listing costs exceed the cost of listing on the American Over-the-Counter Bulletin Board (OTCBB). Listing costs on the Western Exchange must be even higher to carry all the bureaucrats added from Alberta and Ontario. The New Western Exchange will price itself beyond the means of the companies it hopes to attract. 5. The Internet offers a LEGAL and inexpensive alternative to the Western Exchange. See the Capital Funds Group Website [http://www.capitalfundsgroup.com]. The listing competition for sound risk capital companies will get worse in the next few years. 6. Changing the regulations doesn't mean making the system honest. Since 1984, the VSE regulations have changed often. The scams persist. The VSE has been unwilling to weed out its dishonest members. The crooks will control the new stock exchange, as they currently control the VSE. 7. Under British Columbia Law, residents can't trade stocks through brokerage firms outside Canada. I suspect that this Provincial Law exists in every Canadian Province. This law violates NAFTA. The problem for the New Western Exchange is that the Canadian shareholders of their listed companies can't sell their shares in the States or Europe. The non-Canadian broker would violate the Canadian Provincial Law by trading in Western Exchange stocks. Without a foreign "aftermarket" for their stock, what Canadian will buy the stock?
I'll take my lead on the New Western Canadian Stock Exchange from William Shakespeare. "An outhouse by any other name will still smell."
To contact the author: Visit the Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit the Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]