Let Investors Know What They Really Pay Business Week (08/07/00) No. 3693 p.118; McNamee, Mike
Securities and Exchange Commission (SEC) Chairman
Arthur Levitt Jr. is counting on information, technology, and
competition to fix problems in stock trading. This current
problem has not been able to be solved by industry regulators.
The process of counter-acting shady trading practices will result
in cheaper, faster trades for the independent investor. The SEC
proposed rules that would force stock exchanges, brokers, and new
electronic markets to illuminate how their trades are executed.
Levitt believes that if the SEC brings all of the details and
hidden conflicts in trading to light, brokers will be quick to
eliminate poor trades. For investors, the new trading data will
show the real cost of buying stocks. Securities firms say that
the actual listed price of a stock already contains plenty of
profit for the broker or market player. The SEC believes that
investors who know exactly where their money is going will be
better off in the long run.