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Page MONEY TALK Wednesday lebniarv 199 Penny stocks can be costly Some people who don know much about the securities in buy penny stocks hop ing to make huge profits over night But before parting with their money consumers should find out more about the big risks involved with penny stocks so named because a share often costs less than a dollar The On Securities Commission has published a new free brochure on the subject Inexperienced investors who have only a little money to play with often think penny stocks are a good buy says Monica communications officer at the commission Our new phlet Penny stocks Information for investors explains why experienced investors should take on the risks of speculating in penny stocks Some inexperienced con with only a little to invest may feel more com talking to brokerdealers over the phone than they would walking into a major brokerage firm They may feel awkward when confronted by financial terms they don fully tand for But it often easy unscrupulous sellers to convince the person who doesn know much about securities to imest in high risk penny stock sas Zeller These salespeople can be persuasive high pressure sales tactics are common in this business describes a common proach Someone calls and offers to send a free finance and investment newsletter You give them your name and address and they may send you some informa tion Then a few months later another person calls They say re a stockbroker putting together a deal so sweet it II make you rich overnight but you II have to act quickly or all the stock will be sold In addition to he great returns there s little or no risk and jou only need to invest a small amount of money By the time the sales pitch is finished buyers are often so ex cited they commit money without asking for a prospectus information about the company in writing or directly calling the firm they re buying into They may not know broker dealers are entitled to keep as much as cents of each dollar paid for a stock as their commis sion a huge amount compared with the three to eight per cent normally kept by brokerage firms This makes penny stocks profitable enough so brokers will be interested selling them But there s a big down side Brokerdealers can influence the prices of these stocks through manipulation Convincing people to buy stocks in poorly managed companies that are almost wor can raise prices artificial Later when the sellers have made their commissions the stock prices often fall to rock torn where they should have been in the first place To receive a free copy of the brochure Information for in vestors Penny stocks write or call the Communications Section Ontario Securities Commission Queen Street West Suite 1800 Box Toronto Ontano Winter Winder Loans more between now and February 29 1992 and receive off our oneyear term loan Whether you need a loan for a new car used car home Improvements winter vacation or for debt consolidation call your Municipal Trust branch manager Well put together a loan to suit your financial needs Or ask about our 1 Rate Line of Credit which allows you to write yourself a loan of any size at anytime up to your approved limit Loans Approved in 90 Minutes or Less Have you ever been left out In the cold waiting to see if your loan has been approved At Municipal Trust well give you an answer In 90 minutes or lessl Our branch managers come from the community just like you and understand the lending needs of the smaller centres of Ontario For fast friendly professional service on your next loan or mortgage see your local Municipal Trust manager For on a ban wan a era year and an annual raw of 10 bo and thecal ban An subject to our cram approval and regular Loan municipal trust 27 branches across Ontano with over1 3 billion in assets Gary Elliott Manager Georgetown Georgetown Main St S Gary Elliott MonThura 830- 500 Friday 8-30- Saturday 1200