share purchase plan:spp: problems

Does anyone know of a broker who can do early settlement to prevent possible large losses which occur when an SPP is announced within the two days of any share purchase. This is because the broker hasnt registered the shares yet with the company.

So if a company announces an SPP within two days of you buying any shares then you will miss out on the benefit and the value of your shareholding will be reduced.

Sometimes if the share price is volatile it can be possible to loose a substantial part of your share value
due to 1) price reduction and 2) that you dont recieve the benefit.

However you wont miss out on the share price fall!.

I lost considerably when I bought Biota (BTA) shares on 19 sept 2005. The BTA SPP was announced on 20 sept 2005. With all the problems of price dilutiuon and not being offered the shares, that increased rapidly in value, I lost about $23,000

I am amazed this situation exists that can severely disadvantage shareholders. My solicitor suggests I deal with full service brokers only and they will cover the risk of SPPs compared with online discount brokers that don't.

I still cant find a broker who is prepared to offer Ordinary shares with ALL benfits, including SPPs, that may be announced in the following two days .

Any Ideas?

paul


if you wish email me at [email protected]