Buy This Stock, Eh? Canada's Exchanges Are the Wild West Up North

By McGinn, Daniel | Newsweek, May 5, 1997 | Go to article overview

Buy This Stock, Eh? Canada's Exchanges Are the Wild West Up North


McGinn, Daniel, Newsweek


Canada's exchanges are the Wild West up north

WHEN INVESTORS FIRST HEARD the story of Bre-X Minerals, most were aghast. For three years the Canadian mining company claimed to own the world's biggest gold deposit, and its soaring stock turned its executives into millionaires. The gold rush ended in March, when the stock cratered after early tests found little but dirt in Bre-X's Indonesian mining site. But where journalists see a scandal with mini-series potential, Adrian du Plessis sees a familiar tale. Du Plessis spent six years as a trader on the Vancouver Stock Exchange, a market that's nicknamed "The Seam Capital of the World." Now he runs a muckraking Web site that chronicles Canada's dubious deals. "Our reputation is better than it deserves to be," du Plessis says. "Anything you've heard, it's really much worse."

The mystery surrounding Bre-X may end this week, when new tests will show whether there's any gold in those hills. Even if the find is legit, as BreX execs insist, the stock's implosion has given investors a reminder that financial markets operate differently north of the U.S. border. Canada's markets are small, but they produce more than their share of shady investments. Even most market neophytes have heard of the treacherous Vancouver exchange, home of historically du- g bious investments like MTC Electronic Technologies, which promised profits by running a cell-phone network in China (which was illegal), and Cam-Net Communications, whose chairman landed in court on FBI charges that he offered bribes to boost its stock last fall. This time it's the blue--chip Toronto Stock Exchange that's been blemished. When Bre-X tanked in March, Toronto's computers overloaded, and trading was halted for four days straight. The computer glitch is embarrassing--especially in light of Toronto's move last week to dose its trading floor to become North America's largest computerized market. But worse handwringing will come if Bre-X's mines turn out to contain hot air instead of gold. Says financial columnist William Hartley of Canada's Financial Post: "This makes it look like there are a bunch of crooks running around up here."

On the books there's little reason scamsters should thrive up north: Canada's securities laws are very similar to U.S. rules.

Enforcing them is the problem. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Buy This Stock, Eh? Canada's Exchanges Are the Wild West Up North
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.