Please Read the Following Carefully Before Using The Exchange Board:
Getting shares through the exchange board is not risk free. The guidelines are established in an effort to help you get as good a result as possible but are not a guarantee.
Use the exchange board at your own risk.
If people step outside the guidelines please report it to the moderators. With a level playing field we all gain.
New participants are encouraged to ask about reputations or past history of those offering to deal with you.
Individuals are certainly able to set their own criteria elsewhere but here everyone is expected to stick to the guidelines for the following reasons:
1. how to exchange shares with someone else
When two people trade shares one person pays the difference in price only. E.g.
Person A has XYZ @ $50 Person B has ZYX @ $40
Person A sends XYZ to Person B Person B sends ZYX to Person A + $10
2. how to sell a single share certificate you have
Person A has XYZ @ $50 on Dec. 31 Person B wants it but has nothing to trade.
Note: The $10 truly started here as a gift (originally $5) just to cover the expenses of a person doing you a favour. It is a "zero-sum" transaction if you pass the certificate on to the next person who sends you $10.
Note: Person A should disregard what they paid for the original certificate including commissions. Sometimes you're ahead sometimes you're behind, but by the time you've set up 10 DRIPs it'll all average out and you'll have saved over $800 in fees anyway. Think of it as a "starter share".
3. how to sell a share out of your DRIP account
This is very similar to number 2 except you might not get a paper certificate. Instead you end up with an account statement showing one share.
Note: If A & B are spinning out shares to each other there is no need for the $10 Thank you.
4. how to conduct a group purchase
*There is no $10 Thank you involved in a group purchase and it should never be a condition of participation.
The basic process is as follows:
The coordinator pays the same as everyone else. Yes, the coordinator does some work but benefits when someone else coordinates a group they take part in. At the same time we think it is fine for people on their own volition to add a few dollars as an appreciation. However, this should never be a condition of participation from the coordinator and should never be suggested.
We feel this policy will encourage others to help out by coordinating their own groups.
Note: Some brokers will issue individual one-share certificates immediately for $5 per certificate. This often speeds things up a bit and makes life easier for the coordinator. It is entirely acceptable for the coordinator to suggest this.