While investors should not be shielded from the risk of losing money, their apparent lack of confidence in the local market ought to be addressed
ONE afternoon in the early 1990s, when I was working in a Malaysian brokerage firm, I overheard one of my senior colleagues trying to convince the controlling shareholder of a mid-sized company that it was a good idea to sell some of his shares to our institutional clients.
With more shares in the hands of public investors, there would be more demand for research coverage, and a strong chance of the market price of the shares floating higher, my colleague explained.
My colleague spoke to this controlling shareholder quite frequently, providing feedback from the market, offering ideas on how to better promote the company to institutional investors, and seeking access to the company’s tightly held shares.
