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Non-Tech : E*Trade (NYSE:ET)
ET 16.92-0.3%Nov 19 3:59 PM EST

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To: WhySoSoon who wrote (6639)5/30/1999 12:15:00 AM
From: WhySoSoon  Read Replies (1) of 13953
 
The future of OLBs

One day, this industry will saturate. From a managerial economic view point, prices will come down and small OLBs will be forced out or taken over due to enormous price pressure. This industry will be an oligopoly with a small number of OLBs with market dominance. Then there will be a great chance that OLBs will avoid cutthroat competition and succeed in maintaining higher prices. The bottom line is: there will be industry wide consolidation for OLBs because of the price war. After the consolidation, only a few OLBs will emerge as a much stronger force and at that time, they can command a higher fee. Now the question is: Will E*Trade be a winner or a casualty in this consolidation?
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