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.

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