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Friday February IWtj Be a prudent investor rise in stock prices to record levels has brought with it a spate of new stock issues When demand for stocks is at a peak it dearly an Ideal time for a public organization to go public And usually there are plenty of ea people thrusting forward tbek for a chance to become charter members or initial sub scribers In today heady atmo sphere there a widespread feeling that no matter how high the price of a stock is it will surely go higher still That of course is a dangerous myth Prudent investors always in both sides of a stocks VINCENT EGAN On Business story before they That story where a newly issued stock or other vestment security Is concerned is contained in a booklet called a prospectus If you are buying such a security law requires that you be given a that has been accepted by provincial securities commission It also requires that you be given time to read it before your financial com becomes binding if you don t care for tbe story you have an absolute right to cancel your order and have your money returned to you Unfortunately few individual in ever do read a prospectus In full or even nearly so However you can pick up most of the essentials some skilled skimming of the prospectus pages most of which contain tables of figures or the lied jargon that common to this field of law The first essential to be picked up is the size and type of securities being offered for sale Prominently on front cover is the amount of the debt that being funded If it a hood or debenture or the number and class of shares being issued Immedhtely therefore you might be able to reject the issue as able for your circumstances Exam ple If you are of retirement age and need a regular dependable return on your investment you would ouslysay no to a highly speculative undertaking involving a newly launched company Events during the past year in volving Canadian Tire Corp and Its various classes of shareholders have made another piece of advice important Turn to the section beaded Description of Share Capital and read what Is written under Voting Rights Be wary if you are being offered common shares without the right to vote meetings of shareholders you should know that many voting common shares have been taking a beating on the slock market relative to tfieir counterparts If it a an issue of preferred shares which by definition are nonvoting scan the prospectus to see if pre ferred shareholders have the right of retraction that Is the privilege of selling your stock back to issuing company at a specified price and dale And if the securities are bonds or debentures you will be lending your capital to the Issuing company rather than buying a piece of owner ship so check what Is said about a redemption fund Is provision being made to set aside the money that will be needed to pay back the capital that you and other bondholder have put up Short of a personal meeting with the directors and officers of the com and a tour of its operations there probably no belter source of corporate information than a pros pectus But you have to do some sup work yourself or ask for it from the issuing investment dealer underwriter 1 How does com rate of return on investment compare with its competitors What are its corporate Its fine to be a good corporate but if thai means that the com will keep operating a losing branch plant just to protect jobs that could prove to be a highly ruky place for your hardearned savings The old adage still ap plies Buyer beware MONEY lit Sorting out all your choices One of the great benefits of the is also one of its drawbacks Ihc large number of of you can choose from Looking them together Is enough to confuse even a sophisticated Investor says Terry Branch Manager of First Trust In Brampton you break ihcm down into categories they re really quile pie to understand There are two mo for types of I Plana They guarantee thai your will be returned intact and that will be pa a certain amount of interest within a certain lime frame These in safe in when purchased from tut Jul the Insurance Cor they arc Insured for up to SCO but centrally don 1 offer as it fur return at on irnnlifd WKh pi ins here is v fee Hi of tourst prove to be an or I depend ng on nlcrest ralM rise or fall after ou purchase your HUM In the mionty of mlmst pa than that inf it reinvested It the term deposit itself Ian There is no guarantee that your will tarn any rate of return or that your principal will remain in tact when you purchase a non- guaranteed plan There Is however the potential of earning considerably more than you would a guaranteed plan The types of guaranteed plans available to you are I Usually identified as flexible premium guaranteed interest an nuities or single premium deferred annuities this type of is to a guaranteed plan The differences are arc not In sored by the Canada Deposit In suraiicc Corporation and sometimes a Ice is Invoked in open ing the or It ad ministered Some life insurance plans offer a combination of life imuranci Hid a savings future which can used for purposes Such plans arc rare today two reasons be thai tkj often on establish permit ill I or Mutual I purchase one of these you ire in effect units in a fund formed by a group of Investors and thereby becoming a part owner in the Iota fund The fund into which your money has been put administered by a manager Gains in the investment portfolio are passed to jour after the manager takes his or her fee based on how much of the fund you own Likewise losses in the portfolio arc reflected in Die value of your Associate Tax Consultants INCOME TAX RETURNS DONE 101 GUELPH ST GEORGETOWN 8772217 SPECIAL OFFER WHEN WE DO YOUR INCOME TAX RETURN WE GUARANTEE DELIVERY TO TAXATION DATA CANADA THE NEXT DAY BY COURIER AT NO EXTRA CHARGE The no acquisition fee RRSP the manager of Industrial Growth Fund Canada long term leader in SP investments comes an exceptional new product Industrial Horizon Fund Industrial Horizon otters trie same proven professional management the same high level personal service from one of fully Independent Industrial Horizon Fund representative yet charges no acquisition fee so all your in vestment can be working for you day one Broaden your visias Call or write for more Information on Industrial Horizon Fund SUTHERLAND INVESTMENT CORPORATION JACK BOULET 22 Stockman Cres Georgetown Please send me more information on an Industrial Horizon Fund ADDRESS POSTAL CODE PHONE Home Business