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Microcap & Penny Stocks : Sinclare (SNCG) / cyberlinx

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To: Dee Jay who wrote (1810)2/26/1997 2:51:00 PM
From: dloy   of 2696
 
With regards to your comments on the broker-sponsored FlexQuote -- Your arguments would be valid if the two brokerages in question are similar in every manner except for their commission rates. I'm sure everyone realizes that isn't true.

It's up to the brokerages to set what type of promotion they want to offer with FlexQuote. That $18.95 broker might have a typical $14.95 commision before FlexQuote and wants to subsidize the use as a promotional cause.

Likewise, it may be in Sinclare's interests to give the brokers a small break on the subscription in exchange for a guaranteed minimum numbers of subscriptions. Large quantity discount, etc...

It isn't cut and dry on who is paying for the service. You're right, there is no free lunch, but there's still money to be made.

Regards,
Dion Loy
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