Those of you who enter into share forums may already be aware of this horror story, but for those of you who dont, I am reeling from the financial implications (total bankruptcy in fact) of this for people who have unwittingly purchased into this share arrangement. Thinking of course they were buying into a company that is developing infrastructure for Brisbane, thinking it 'safe'. But it could well spell the end of everything they planned for themselves and their children.
The name of this is Brisconnections, the share code being BCSCA. You would think when buying 'shares' through online trading, the only risk is that the share goes belly up and you lose all your money. Bad enough. But the trick with BCSCA is that you not only face that risk (which did happen) but when you buy, you also buy the liability to pay $1 per share in April, then another $1 per share a few months later. OK, still not a particular biggie when the initial price was around $1 on release. But the share price has fallen to less than 1cent, so people who think they are getting a bargain in infrastructure by purchasing several thousands of shares, are buying themselves millions of dollars in liability!
In the IPO, there was full disclosure of the risk; now they are trading on the internet, there are NO SUCH WARNINGS.
Buying just $2000 worth of BCSCA incurs a debt of $4,000,000
Normally you could sell them before the liability falls due; trouble is, now the problem has been realised, there are millions of shares on offer, and no buyers. And the companies behind the IPO are Macquarie Bank, and they are saying they will enforce the payments!
Last night I read a post where someone bought only a few hundred dollars worth; they are facing losing everything - their home, assets, and their daughters future inheritance. They say it seems so surreal except for the heart palpitations, the shakes, the tears, the gut pain & the FEAR. All because of a couple of errant clicks.
Such a shocking, goddam awful place to be.
The name of this is Brisconnections, the share code being BCSCA. You would think when buying 'shares' through online trading, the only risk is that the share goes belly up and you lose all your money. Bad enough. But the trick with BCSCA is that you not only face that risk (which did happen) but when you buy, you also buy the liability to pay $1 per share in April, then another $1 per share a few months later. OK, still not a particular biggie when the initial price was around $1 on release. But the share price has fallen to less than 1cent, so people who think they are getting a bargain in infrastructure by purchasing several thousands of shares, are buying themselves millions of dollars in liability!
In the IPO, there was full disclosure of the risk; now they are trading on the internet, there are NO SUCH WARNINGS.
Buying just $2000 worth of BCSCA incurs a debt of $4,000,000
Normally you could sell them before the liability falls due; trouble is, now the problem has been realised, there are millions of shares on offer, and no buyers. And the companies behind the IPO are Macquarie Bank, and they are saying they will enforce the payments!
Last night I read a post where someone bought only a few hundred dollars worth; they are facing losing everything - their home, assets, and their daughters future inheritance. They say it seems so surreal except for the heart palpitations, the shakes, the tears, the gut pain & the FEAR. All because of a couple of errant clicks.
Such a shocking, goddam awful place to be.