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NAIC: PROPOSED SEC ACTIONS THREATEN RIGHTS OF INDIVIDUAL SHAREHOLDERS

NAIC: PROPOSED SEC ACTIONS THREATEN RIGHTS OF INDIVIDUAL SHAREHOLDERS
 ROYAL OAK, Mich., Sept. 10 /PRNewswire/ -- Actions pending before the U.S. Securities and Exchange Commission (SEC) could jeopardize the rights of individual investors to hold their own stock certificates and enroll in corporate dividend reinvestment plans.
 A report by The Bachmann Task Force, an SEC-appointed committee made up of retail brokers, has proposed changes in the stock registration process that could force shareowners to keep their stock holdings in a brokerage account, thereby eliminating the dividend reinvestment process, locking investors in to the same broker when a decision to sell is made, and exposing them to the risk of brokerage financial problems.
 The National Association of Investors Corporation (NAIC), whose members hold individual common stock investments collectively totaling billions of dollars, is calling on all individual investors to write to the SEC and protest the task force's recommendations.
 According to NAIC President Kenneth S. Janke Sr., "If the SEC accepts the Bachmann proposals, individual investors' ability to negotiate commissions and determine who controls their assets will be severely limited. This would further contribute to the decline of individuals' participation in our securities markets."
 Statistics gathered by NAIC show that the more than 51 million individual investors in America presently invest a smaller portion of their financial assets directly in common stocks than at any other time in the past two decades. In the 1950s, the individual was responsible for 80 percent of all trading on the New York Stock Exchange. Today, the individual's share of trading is approximately 20 percent.
 Janke noted, "Up till now, many individual investors with limited funds have been able to reinvest their stock earnings by sending the money directly to the companies issuing the stocks. By suggesting the elimination of this option, the task force directly contradicts two of the basic investing principles of NAIC: to invest a set amount regularly, and to reinvest dividends and capital gains."
 Individual investors are encouraged to voice their concern about the Bachmann Task Force Report by writing: Mr. Jonathan G. Katz, Secretary, Securities and Exchange Commission, Mail Stop 6-9, 450 Fifth St., NW, Washington, D.C., 20549.
 NAIC is a national, non-profit organization of investment clubs and individual investors, based in Royal Oak. Founded in 1951, NAIC is dedicated to increasing the number of individual investors in common stocks, and to providing a program of investment education and information to help its members become successful, long-term, lifetime investors. NAIC currently has more than 160,000 members representing some 8,000 investment clubs. The average member invests $34 per month in an investment club. The aggregate monthly NAIC membership investment of new money exceeds $15 million. The total holdings of NAIC members exceed $17 billion.
 /delval/
 -0- 9/10/92
 /CONTACT: Linda Pollock or Kathy Loehrig, 609-778-0380, both of Anne Klein & Associates for the NAIC/ CO: National Association of Investors Corporation; U.S. Securities and
 Exchange Commission ST: IN: FIN SU:


MP -- PH030 -- 8087 09/10/92 14:13 EDT
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Publication:PR Newswire
Date:Sep 10, 1992
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