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Non-Tech : Fight The Power! -Your Broker Just Screwed U - Now What? -- Ignore unavailable to you. Want to Upgrade?

To: Curtis E. Bemis who wrote (143)	12/12/1998 6:19:00 PM
From: THOMAS GOODRICH	Respond to of 323

Interesting article and Schwab's declaration that they're not a casino! In essence a casino is what online stock brokerages such as Charles Schwab have become in recent years. And, that's not good news for traditional long term investors. While it's apparent Schwab realizes many of their customers don't know what they're doing and while the company's intent is admirable, the principal reason Schwab has raised margin requirements is to protect itself as a creditor. Seemingly, in recent months the company has been stiffed by some investors who placed open orders on some IPO's mainly in the Internet sector, got filled at an astronomical price and couldn't pay up.

To: Curtis E. Bemis who wrote (143)	12/12/1998 9:30:00 PM
From: Jim S	Read Replies (2) \| Respond to of 323

Interesting article, Curtis. It seems to me that it is a blatant admission by Schwab that market makers rule, and even the 'big boys' can't play in their sandbox. If the Naz were run as an HONEST electronic exchange, Schwab's policies wouldn't be needed. But, what's happening is that the MMs are not reporting prices as they happen, are delaying trades, and sometimes are simply not representing some orders. Traders are being ripped off, plain and simple, and if the 'big boys' can't exert any influence on the dishonest practices, the Naz is being turned over to the sharks. With these wild internet stocks, I think what's happening is that MMs aren't always in between buyers and sellers; if you put in a buy order, the MM may not have a seller, but he can go short to give you your stock. Now, if the price jumps by 50 bucks, he's in trouble, and if some broker is routing all orders for that stock to him exclusively, he's going to use that order flow to get his money back. I'm no expert on all this, but that's sure what it looks like from where I sit. jim