E*TRADE IPO ALERT THREAD Message Board

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Technology Stocks : E*TRADE IPO ALERT THREAD

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To: Topannuity who wrote (15076)	12/28/1999 9:33:00 PM
From: Keith J	Read Replies (2) of 15145

Ben Holmes on the future of web brokers getting IPOs: A war is brewing in the online brokerage business. I've been thinking about this a lot lately, and I'm convinced that this is just around the corner. Online firms such as ETrade (EGRP:Nasdaq) and Wit Capital (WITC:Nasdaq) are relying heavily on the allocation of IPO shares from the bricks-and-mortar firms as bait to attract new online customers. What do you suppose happens when the bricks-and-mortar firms finally decide to move onto the Web themselves? What's the first thing they'll do to win back those customers? My guess is that ETrade and Wit will see fewer shares in the deals and that the big firms -- which, by the way, essentially control the production of new-issue equities -- will slowly shut them out. I see IPO shares being used as a sort of currency to buy back business that has been lost to the online brokerages.

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