IPO / IPOs - Exit Strategies

Selling Shares

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If are looking at selling shares and you hold a share certificate you can sell them quickly and efficiently through some online companies.

You can open your account over the telephone and could be selling shares immediately . The knowledgeable dealers will be able to quote you the current market price and confirm the deal whilst you are on the telephone. Commission charges and fees may vary depending on the broker.

1. Call your favorit broker and speak to a qualified dealer.
2. Confirm your personal details, set up your account and obtain your client number (new accounts only).
3. Obtain the current share price quote.
4. Place your instruction with the dealer e.g. "I would like to sell 2000 shares in Vodafone PLC".
5. Receive confirmation from the dealer that your shares have been sold and the price that they have been sold at.
6. The following day you will receive a Contract Note, confirming the deal together with a transfer form.
7. Sign the transfer form and return with your share certificates.
8. working days after the deal, on the settlement day, we will send you a cheque for the proceeds of the sale, less any commission charges.

Buying Shares

Suppose you want to buy shares in a company XYZ whose middle price in today's paper is 105 pence.

• Phone the broker (ask for him by name), then give your name and probably your account number.
• Ask 'What price is XYZ?'

The broker will reply something on the lines of 'Buying price 110p, selling price loop', or even just '100-110op'.

• If you don't like the current buying price (110p), just say 'too much' or 'not interested' and there is no further obligation.
• Otherwise, give your order such as 'buy one thousand XYZ at maximum 110 p'. It is strongly advisable to state a maximum price (buying) or a minimum price (selling). Never say 'at best '! However, you might be willing to say 'at maximum 113p'.

Get the broker to repeat this order to you, especially if you are placing several orders at once, otherwise embarrassment could be caused.

Virtually all brokers now tape-record their telephone calls.

• That ends the transaction.
• Say 'goodbye' and ring off.
• Once you have rung off, you cannot change your mind.

You should receive the Contract Note the next day. It will state exactly what has been done for you by the broker, giving the full price including details of the commission, stamp duty (where appropriate) and the Stock Exchange levy. Check that the details agree with what you wanted, complain if they do not.

Later, you will receive a statement, listing all your transactions and requiring settlement by the stated day. You write out a cheque, make it payable to the broking firm (not to the individual broker) and post it off with your client number or other form of identification so as to arrive before the stated day. It is necessary to take action to ensure that you have cleared funds in the bank in time to meet the cheque. If you normally keep the money in a building society, it will have to be transferred to your bank account in good time.

Owing to a number of frauds perpetrated on cheques 'lost' in the post, the Cheques Act (1992) provided that cheques crossed 'A/C Payee only' could only be paid to the bank account of the named individual or company.

Important - purchases of gilts and traded options must be settled on the next working day after purchase. Unless you live next door to the broker, this requires that you leave a sufficient sum on deposit with the broker before making the purchase. Some brokers will allow late settlement of gilts - ie on Account Day - for a slightly higher purchase price.

In order to purchase shares in an investment trust through its savings scheme, it is necessary only to fill in the form and send a cheque. Make sure this will arrive in good time before the day, usually at the end of the month, that the trust buys the shares on the open market.

Retain all the contract notes for possible inspection by the Inland Revenue. Keep old notes for seven years. After weeks or months, your broker or the investment trust will send to you the Share Certificate. You were, however, the owner of the shares as soon as you bought them and have a full entitlement to any dividends which they paid after that date.