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Technology Stocks : COMS/USRX

COMS 0.00130

-13.3%

Nov 7 11:47 AM EST

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To: Stau who wrote (1040)	3/21/1997 8:26:00 AM
From: Dh	of 1384

After hours trading is normally done through services such as Instinet. To trade with instinet you need to have a broker with access to the instinet or have your own instinet terminal (very expensive). It is not always a benefit to trade after hours. There has been many ocasions where the stock price at the open does not reflect the after hours trading. In the case of 3COM you will see it open up but other stocks have risen in after hours trading to wind up opening down or at the same level of the previous close. Also, if 3COM opens say at 38 this morning and you were a seller last night at 35 you would not be so happy about having the "benefit" of access to instinet. The other point I'd make is that after hours trading is primarily for the benefit of speculators since anyone investing on a long term basis is not going to worry about the exact second they enter or exit a position. And about not being fair, the SEC has addressed some of this so that the bid/ask prices quoted on the instinet must be quoted in the general market. This is actually a much bigger issue than the after hours trading. When you see a stock which has say, a 1/2 point spread someone with an instinet terminal will often see a 1/8 or 1/4 spread. Thats why brokers will give you such a great deal on nasdaq stock commission fees, they are getting their money in the difference in the spread. If they make say a 1/4 point on a thousand share trade they may only charge you 14.95 commission but they are actually making 250.00 on the spread - with zero risk. Not bad eh? The stock market has never been fair, it is a reflection of the world we live in. Who here believes that life is fair?

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