A Peek into the Stockbrokers’ Bag of Tricks
The salesman knows nothing of what he is selling save thathe is charging a great deal too much for it.
In a November 1993 article entitled “Money Angles Miracle on Wall Street!” Time magazine covered a new development in the brokerage business: Detroit-based brokerage firm Olde Discount Corp. was offering no-commission stock trades. It was a deal that not even the E*TRADE Baby could have matched. But less than five years later, in September 1998, the SEC fined Olde Discount $4 million; barred its national sales director and a regional manager from the securities industry; and fined the founder of the firm, Ernest J. Olde, $1 million.
Olde Discount ...