Registering Penny Shares

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Ken2B

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Hi,

I am absolutely new to dealing in shares and would welcome some advice.

Briefly:
I am UK based.
I know absolutely nothing about share dealing / buying / selling.

My son's company has just been floated in the US.

I have been offered introductory shares at half price.
(apparently this is a normal proceedure)

I understand that I will receive a share certificate with an understanding that I will not be able to trade in the shares until early next year.
I don't have a problem with this.

I cannot, however, find any information on how to transfer the paper Certificate into a form of electronic registration that would allow me to trade them when the time comes.

As the shares are only trading at about 30 cents at the moment, and the company has no history, they are considered high risk. ( penny shares? )
Again - I have no problem with this - after all my son owns a quarter of the company.

I found a large broker here in the UK who informs me that they can trade in this type of shares, but I would need to register them electronically first then transfer them into the account that I would need to create.

My question is - how would I do this?

Many thanks for taking the time to read this.

Ken
 
Arabian is right.

Don't touch those penny shares even if your life depended upon it...
 
is your son a psychopath who is going to rip you off?
Click to expand...

You have no details of either my son or his company so why so aggressive with your comment?

Don't touch those penny shares even if your life depended upon it...
Click to expand...
May I ask why?
How do you come to your assessment of my suggested investment when you have no details?
Surely all shares of this type don't fail to increase in price?

My original question was how to register a US based share certificate, either in the US or in the UK so that I can sell them at some future date.
 
this kind of spiel is usually used to con people out of money. There will be a fee that you have to pay for getting the shares 'registered', and you are left with shares in a (sometimes legit) company that nobody in their right mind would want to own.
 
Many thanks for your comments.
I realise that trading in these shares - even though they are in my own son's company - come with high risks. I think that has come across in the replies received so far. :)

If I am prepared to take this risk - Can anybody tell me how to register a share certificate issued in the US?
 
What is the name of the broker you mention?
Click to expand...
TD Waterhouse

They tell me that they cannot register the certificate but will transfer in the shares once they are registered.
 
Ken2B said:
Hi,

I am absolutely new to dealing in shares and would welcome some advice.

Briefly:
I am UK based.
I know absolutely nothing about share dealing / buying / selling.

My son's company has just been floated in the US.

I have been offered introductory shares at half price.
(apparently this is a normal proceedure)

I understand that I will receive a share certificate with an understanding that I will not be able to trade in the shares until early next year.
I don't have a problem with this.

I cannot, however, find any information on how to transfer the paper Certificate into a form of electronic registration that would allow me to trade them when the time comes.

As the shares are only trading at about 30 cents at the moment, and the company has no history, they are considered high risk. ( penny shares? )
Again - I have no problem with this - after all my son owns a quarter of the company.

I found a large broker here in the UK who informs me that they can trade in this type of shares, but I would need to register them electronically first then transfer them into the account that I would need to create.

My question is - how would I do this?

Many thanks for taking the time to read this.

Ken
Click to expand...

Ken , I do not wish to alarm or scare you but I have been chasing 'scammers' for the past ten years and could give you a list of names of individuals and outfits who operated on a global scale flogging 'penny shares' via pseudo high street brokerages/agencies. Tho appearing legit having been licenced (fraudelently) they proceeded to use 'boiler room' strategy targeting mostly elderly . I am one of a group of 17 who were sold 'junk' overpriced shareswhich we discovered were regulation s with restrictions. The scammers were creaming off an undisclosed 60% commission .
All the 'shares' junk foisted on the 17 victims ( approx total £1m) now are in the zero value range. Some of those involved in the scams have been heavily fined by Financial Regulator in USA, UK & Hong Kong . Secondary scam occurs mostly from same sources
with huge offers to buy your shares - if you will part with a fee to deregister or some
other reason . Eitherway your hard earned money goes up the swanee !
Appreciate your son has a quarter share in the Company . With due respect you MUST
conduct a DUE DILIGENCE exercise and even taking all the usual precaution you will find
there is some gangster waiting to rip you off. ! It's tough territory out there - not for
the faint hearted. So you are wished good fortune whatever you do. Sorry I cannot help with your question re registration.
 
GOLD31,

Many thanks for taking the time to reply to my post.

I have reflected on this for many weeks.
I wanted to be absolutely certain of what I was letting myself into.
I am not reckless regarding investments and I have asked questions, not only here, but of the person selling the shares and of TD Waterhouse and elsewhere, that have not been answered to my satisfaction.

I have read numerous articles re. "penny shares" and I am well aware that there are many out there who are looking to rip off the unsuspecting.
I have had my doubts ( and still do ) regarding this particular investment.
I trust my son and his partners implicitly. He has a good business and good, reliable partners.

I had my reservations on two counts:
1. I could not see how to register these shares ( if I did decide to invest ) - hence my post here. I am still no wiser.

2. To sell the shares (at some point in the future) I was not convinced that there would be anybody willing to buy them.

I need to resolve the first question before I look into the second.

I realise that, in general, shares of this type are to be avoided but are you saying that, even knowing what I do about the company, they should still be avoided?

Can you enlighten me on how I may get ripped off registering the Share Certificate please? ( you will need to keep it simple :) )

If you can find the time to reply I would be grateful.
 
Look, the point is that it certainly isn't standard practice to do any of this stuff. So given it's your son, we need to work out what's going on. Is your son possibly being conned as well?
 
Ken2B said:
TD Waterhouse

They tell me that they cannot register the certificate but will transfer in the shares once they are registered.
Click to expand...

Ken - Just checking - is that T D Waterhouse (? Stockbrokers) in Leeds ? One of the 'scammers' who has/had an address in Leeds was operating from and address in Germany & had association or utilised an outfit with an address in Leeds or perhaps another location in Yorkshire or UK . They received 'bought contract' notes from a Waterhouse source - appears on behalf of the 'boiler room' in Germany ! The latter (Waterhouse) may have been innocently implicated but nevertheless it created suspicion. Our research has revealed a huge amount of 'rip off' activity &
as mentioned I do not want to alarm you but you need to take great care or else you will be having sleepless nights & nightmares ! . Should you wish to join our group and be kept informed of valuable information accumulated perhaps you can contact me off site.
 
So if you had forked out for these shares and now had these certificates in your hand you wouldnt know how to even start about selling them again. Doesnt that in itself show you how risky messing with these type of shares is?

You also have to consider if the shares are restricted? Will you ever be able to sell them again?

My guess is that if you touch these you are going to get burnt.
 
Ah - PBoyles - if only your messages could be broadcast all over the world in BIG PRINT !
There is plenty of opportunity through the internet to see the amount of SCAM that takes place .
The public never before had such facility via newspapers, radio, tv , internet
But we want to make it MUCH MUCH harder for the ROGUES by keeping the potential victim(s)
aware of the dangers so those 'scammers ' will not be swanning around in their Porche,Daimler
Rolls Royce , with their fancy holiday destinations acquired on the backs mostly of elderly pensioners
by misleading deceptive & fraudelent means. Would be interesting for Ken 2 to have a small flutter
that he could afford (not more than $500 ! ) and follow his share to see what happens - very very risky
I know but would help with the learning curve !
 
Last edited:
Hi Gold31 / pboyles

So if you had forked out for these shares and now had these certificates in your hand you wouldnt know how to even start about selling them again. Doesnt that in itself show you how risky messing with these type of shares is?
Click to expand...
This, as I explained earlier, is one of the reservations that I have.
I have not parted with any cash and do not intend to do so unless I can limit the risks.
If I do decide to gamble, and I realise that it will be a big gamble, I will only be risking cash that I can afford to lose.

If I can't discover how to register the Share Certificate ( assuming I get that far ) then this is a non-starter anyway.

Gold31
is that T D Waterhouse (? Stockbrokers) in Leeds
Click to expand...
Yes - they have offices in Leeds, Manchester, Birmingham and London
 
Penny shares can be dodgy at the best of times, getting involved at this stage before they are even exchange traded - barge and pole spring to mind.

I would tell your son you would rather wait until they are officially listed, and ask him if would transfer some of his shares to you. He could replace his transferred shares with future options at a discounted SP anyway if he is a director.

One good reason to leave well alone is that IPO's (initial public offering) stocks tend to be volatile when first traded, also the flotation market cap may be completely at odds with the markets valuation, in which case the 'bargain' shares seem less of a bargain...
Of course the opposite could happen as well, but as I said earlier, your son would be entitled to cheap options shares, which he could transfer to you. As an example, you will frequently see things like 1p director options when the market SP is 3-8p (UK alternative investment market - aka AIM).

Wait until they are officially listed, its safer, you may miss out on upside but you minimise risk as well.
All the above ignores the other risks:

Is your son being scammed as well?
How much do you know about the company?
How much do you know about the other directors and their track records?
Do you have any knowledge or understanding of the companies products or markets?
 
Ken in one years time you're gonna think to yourself, why didn't I listen to arabain, he was right on the money, if a little bit rude.

I'm out of this thread...
 
All things considered, Arabian is right, I'm out of this thread too. I'd rather not be involved in any further advice about a company and situation I have no information on.

Ken - if you are still contemplating putting money in, ask yourself this, would you get in if you son was not involved in any way.
If the answer is no to the above question, nothing changes with a relative involved.
 
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