RealTime IT News

The Direct Approach

The online brokers are not the only firms making full-service stockbrokers miserable.

There is another group, represented mainly by StockPower and NetStock Direct.

They allow for direct stock-purchase plans (DSPPs). That is, you can buy stock directly from the company -- say Dell or Yahoo!

There are many advantages to DSPPs. The commissions are usually minimal, if not zero. You can also reinvest your dividends and set-up investment plans (say, invest $1,000 per month and so on). By using the Web, DSPPs are painlessly easy.

As for companies, they like the plans, too. The shareholders usually are long-term. What's more, the paperwork is less. Companies also have a better idea of who their shareholders are.

This week, StockPower was able to raise $22 million (its second round). As for NetStock Direct, it has raised $12 million.

What will they do with the money? Well, probably lots of advertising. So don't be surprised if you here more about this over the next year.

ISDEX

ISDEX (r)

 

9-Sept.

% change

The Internet Stock Index

 

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from

www.isdex.com

   

3-Sept.

     

close

ISDEX

 

504.51

0.58%

NASDAQ

 

2774.62

-2.21%

DJIA

 

11198.45

1.14%

       

Amazon.com

AMZN

63.63

1.91%

American Online

AOL

96.25

-0.58%

Ariba

ARBA

143.13

4.38%

At Home

ATHM

40

-2.30%

Axent Technologies

AXNT

13.38

2.92%

Broadcom Corp

BRCM

125.38

-3.97%

Broadvision

BVSN

106.5

-2.74%

Beyond.com Corp

BYND

15.94

-5.18%

CDNow Inc.

CDNW

13.44

-6.08%

Checkpoint Software

CHKP

90.69

6.00%

CMGI Inc

CMGI

87.38

1.31%

Concentric Networks

CNCX

23.44

2.45%

CNET Inc.

CNET

41.5

0.00%

Cisco

CSCO

69.94

-1.41%

Cybercash

CYCH

8.44

-4.20%

Doubleclick

DCLK

101.31

3.50%

eBay

EBAY

144.44

8.19%

E*TRADE GROUP

EGRP

23.53

-5.88%

Earthlink Networks

ELNK

45.5

-4.97%

Exodus Communications

EXDS

77.59

2.51%

Go2Net Inc.

GNET

66.5

-0.46%

Healtheon

HLTH

34.63

2.03%

Inktomi Corp

INKT

124.88

7.89%

Infospace.com

INSP

47.5

1.19%

ISS Group

ISSX

29.25

17.56%

iVilliage Group

IVIL

32