Online Broker Prevents Trading of Recent IPOs
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Discount brokerage Charles Schwab Corp. has notified its online customers that it will not accept trades of four recent initial public offerings, three of which are Internet stocks.
The Internet stocks on the list are Internet America Inc. and Abovenet Communications, which went public Wednesday, and Infospace.com Inc., which is expected to begin trading next week. Infinity Broadcasting Corp., CBS Corp's radio network which began trading Wednesday, is also affected by the decision.
"These securities have been removed from electronic trading due to expected volatility and fast-market conditions," Schwab said in a notice to customers posted on its Web site.
"Volatility and fast-market conditions could result in price quotes significantly different from current trading prices and cause delays in reports of order execution."