Kuwait Stock Exchange Scraps Oddlot Market

In what is apparently a move from May 2012, the Kuwait Stock Exchange has scrapped the Odd Lot market.

This is a huge blow to all small time investors that had previously purchased minor shares in blue chip companies, as it now means their shares are no longer redeemable in terms of value.

The only plus however is that these shares shall remain in the investor’s name, meaning all subsequent future earnings in terms of cash or stock dividends shall be paid to said investor.

Now it is merely a matter of awaiting the breakeven point whereby your total cash dividends becomes equivalent to your initial investment, as bonus shares shall no longer matter since investors are unable to part with their shares on the open market.

I was shocked beyond words when I discovered this, as I had no idea the odd lot market could ever be scrapped.

For those unaware of what the odd lot market is, you may think of it as the flea market of the stock exchange, where smaller denominations of shares could be purchased and sold yielding small time investors better than average profits, or atleast more return than the Risk-Free rate of return which banks offer to savings account holders.

Tis truly a sad day.

 

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