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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?


To: Michael who wrote (14547)3/2/1998 10:36:00 AM
From: Bonnie Bear  Read Replies (1) | Respond to of 18056
 
The brokerages make their money finding the good deals before you do. --g- and M&A activity, junk bonds, etc. They are investment houses, the brokerage costs are a tiny part of their revenue. If the market goes down they'll be making profits issuing high-yield bonds, bond-trading and working corporate divestitures. And I guarantee their computers will be the only ones to actually time a Dell short correctly!
consider this: 20% of the volatility on the market is computer trading index arbitrage. Wouldn't you like a part of that revenue stream?