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Gold/Mining/Energy : Capital Alliance Group - CPT (CDNX) -- Ignore unavailable to you. Want to Upgrade?


To: dean_k who wrote (21)3/14/2000 11:04:00 AM
From: dean_k  Read Replies (1) | Respond to of 960
 
Using something like the SEG portal, arbitrage possibilities would be dramatically increased. Is this part of the SEG PLAN, that is to bring world wide arbitrage to investor/speculators? (A rhetorical question.)

For those in the need to know about arbitrage: The near simultaneous buying and selling of a security at two different prices in two different markets. In an arbitrage trade the profit would arise without risk (except for the consideration of transaction costs!).

Often arbitrage is limited due to access to markets. IMHO, SEG provides an increased opportunity for this type of 'safe' trading!

kindly, Dean



To: dean_k who wrote (21)3/21/2000 12:25:00 AM
From: keith massey  Respond to of 960
 
Dean

Question #1
I understand the interest in the GEM exchange since SEG is starting in the Asian markets. Explain to me why an IPO on GEM is more advantageous than one on CDNX?


It is very difficult to raise large sums of money (e.g $75 million Cdn) on the CDNX even in one of the biggest bull markets ever. It is very rare to see more than $10-15 million raised in a single deal on the CDNX. They could have raised this money on the NASDAQ. However raising these funds on the GEM exchange is likely easier since SEG's initial market is Asia and all of their current brokerage partners are from that area. The majority of individuals investing on the GEM exchange have heard of SEG's current partners, ICEA, Tia Fook, China Securities, etc., these are the Schwabs, Etrades, etc. of Asia. However few investors playing the NASDAQ are likely to know these brokerage firms and initial give SEG the valuation it deserves. In addition, a GEM listing will also enhance their capability and credibility to do business in Asia.

Question #2
Is the following true or false.
The success of SEG is largely based upon the premise that:
a SEG Portal to EXISTING brokerage house will have a competitive advantage in comparison to a single brokerage house to many exchanges.


True - several of the competitive advantages that SEG has over a single brokerage house to many exchanges have been discussed in the last 40 or so posts.

Best Regards
KEITH