Online Investing Tips #2



*1. NASDAQ-AMEX

The Nasdaq Stock Exchange (the computer trading system of the 
National Association of Securities Dealers) has come into its 
own in the 1990s. The bull run of this decade is founded 
primarily on the Dow index of 30 stocks and the large-cap 
technology companies of the Nasdaq. As the world economy (and 
particularly the U.S. economy) shifts from industry-intensive 
to information-intensive, the Nasdaq's universe of technology 
companies becomes ever more important. The exchange contains 
more than just tech firms, but Nasdaq is known as a 
tech-oriented exchange, and the Nasdaq Composite Index is a 
benchmark for technology performance across the board. 

Nasdaq recently merged with the American Stock Exchange (AMEX), 
further entrenching itself as a major exchange, and the 
Nasdaq-Amex site is a concise mix of real-time news and 
interactive information. Its quote server graciously accepts 
ticker symbols for the New York Stock Exchange as well as 
Nasdaq and AMEX companies. A glance at the home page tells you 
instantly how the Naz is performing during a trading session, 
as well as earnings surprises during earnings seasons. A 
portfolio section and option quotes round out the offerings. 
Java-equipped browsers only need visit this slick interface, 
which features real-time updates to index prices. 

http://www.nasdaq-amex.com


*2. WORTH ONLINE

Following the Internet ethic that information wants to be free, 
Worth Magazine places most of its editorial content on the 
Worth Online Web site. "Financial Intelligence" is what they 
call it, and who can't use a little extra money smarts? Perhaps 
more valuable than the current issue is the Archives section, 
where you can search past articles. Furthermore, there is some 
content at this site that appears only online. 

Worth Online attempts to provide an investment community with 
its message boards, which are featured prominently. The boards 
are awkwardly presented, though, and don't offer much of an 
alternative to better-established discussion forums elsewhere. 
Stick to the Smart Consumer and Peter Lynch Archives sections 
for the best reads. 

http://www.worth.com/


*3. INVESTING IN BONDS

Getting a little jittery about the stock market? Nervous that 
Y2K will bring stocks crashing down to more grounded 
valuations? Such anxieties are enough to get an investor 
thinking about bonds. Ahh, bonds, the safe haven for fearful 
money. Most financial advisors recommend that a portion of 
every portfolio be devoted to government or corporate bonds or 
bond funds. Investing in Bonds furnishes a comprehensive bond 
primer, one of the best online. 

The site shines through coherent organization and simple 
explanations. >From the "Investor's Guide to Bond Basics" to 
"What You Should Know About Buying and Selling Municipal 
Bonds," and many other step-by-step tutorials, this site makes 
bond investing understandable. Investing in Bonds is produced 
by the Bond Market Association, which represents bond-trading 
institutions. 

http://www.investinginbonds.com/


*4. WATERHOUSE SECURITIES

The virtual broker of the week is Waterhouse Securities, a 
popular broker for option traders and common stock investors. 
Offering a broad range of instruments, including stocks, mutual 
funds, bonds, CDs, unit investment trusts, and options, 
Waterhouse has irons in several fires. Besides attractive 
commission rates, Waterhouse has earned a positive buzz on the 
Net for its reliability. The Web site may not embody 
state-of-the-art design, but it also isn't encumbered with slow 
graphics or fancy elements that just get in the way. 

Waterhouse accepts direct deposit investment contributions, as 
well as electronic money transfers--great for investors who 
want to take positions quickly and need to fund their accounts 
in a hurry. An in-house Dow fund makes basket blue-chip 
investing simple and is an attractive feature. The online 
brokerage is supported by over 160 physical branches. 

http://www.waterhouse.com


*5. IPO EXPRESS

Getting in on the ground floor of an initial public offering 
(IPO) is difficult for individual investors, thanks to 
institutional control of the initial share distribution 
process. But some online brokerages are democratizing the 
playing field by developing relationships with underwriting 
investment banks and making new issues available to account 
holders. IPOs are risky investments, though, despite the highly 
publicized cases of Internet stocks making investors wealthy in 
a single day. 

Whether you have an opportunity to invest in an IPO or simply 
enjoy mapping the IPO landscape, what better source of 
information can there be than the Securities and Exchange 
Commission (SEC), which regulates the IPO filing process? IPO 
Express, a division of EDGAR Online (the SEC online database of 
company filings), divulges quite a bit of free information. 
Paid subscribers choose among several monthly plans, depending 
on how timely and in what format they want their information. 
But even unpaid, unregistered users can get a lot out of this 
site, including recent filings, upcoming pricings, IPO daily 
news, and performance statistics. 

http://www.edgar-online.com/ipoexpress/


*6. BROKER METER

SmartMoney has introduced an incredibly fun, addictive little 
Java applet to its Web site, but its usefulness is open to 
debate. The Broker Meter is an inline (meaning it doesn't 
require a download/installation process) Java program that 
quickly tells you how your online broker compares to other 
online brokers. This gadget is strictly concerned with Web site 
performance--not with trade execution speed, customer service, 
account features, or other criteria by which a brokerage should 
be chosen. But as the introduction to Broker Meter says, you 
have to get in the front door before you're able to trade or 
access those great account features. Broker Meter helps 
determine which brokerage sites are geared for speed 
and accessibility. 

Using drop-down menus, you can set Broker Meter to measure 
page-download times, average page size, DNS lookup times--all 
from any one of seven American cities. This thing is fun to 
watch; the list of 25 brokers scrambles to reorder itself as 
you click on each new criterion. Give it a try--Broker Meter is 
quick loading and spills the beans on sluggish brokerage sites. 

http://www.smartmoney.com/si/brokermeter/


*7. BIG TIPPER

You must like tips or you wouldn't be reading this. However, 
when it comes to stock tips, your mother surely taught you not 
to talk to Internet strangers. It's good advice. However, the 
Big Tipper doesn't provide just any homegrown stock advice. 
Instead, the site is a clearinghouse of stock picks promoted by 
analysts, journalists, and other investment gurus on television 
and in publications. A rundown of experts who have appeared on 
CNBC, CNNfn, and Bloomberg Television greets you on the home 
page--all are recent appearances and their stock 
recommendations are highlighted. Tips that have appeared in 
publications ranging from Forbes to Business Week to Smart 
Money are featured as well. 

All of these recommendations are helpfully collated and 
cross-referenced in a feature called The Intersection, so you 
can see which companies have been recommended the most in the 
past week. You can also call up a page that tracks how the 
recommendation fares in the marketplace based on a $1,000 
investment. This way, you can keep a running scorecard on 
different analysts. Big Tipper is a unique idea very 
well implemented. 

http://www.bigtipper.com


*8. SCOTTRADE

When it comes to bargain-basement brokerage commissions, 
Scottrade is competitive without scraping the bottom of the 
barrel. At $7 for market orders and $12 for limit orders (more 
for placing orders over the phone or with a human broker), 
Scottrade is cheap. In fact, that word applies fairly well to 
the site design as well, but this isn't a beauty contest. The 
site's pages display quickly, unburdened as they are by 
cosmetic niceties. Real-time quotes are factored into the 
equation, with a quota of quotes (so to speak) for every order. 

Trading options can be a frustrating experience at Scottrade, 
because complete pricing information isn't provided. If you 
don't know the option symbol (and since there are many symbols 
for each underlying stock, most people don't know it), you must 
know the underlying stock symbol, expiration month, and strike 
price. A much better system would be to provide complete price 
lists for all options of any underlying stock. Otherwise, 
customers are forced to go outside the brokerage site to obtain 
such lists--not hard, but inconvenient. 

http://www.scottrade.com


*9. IPOs RESOURCE PAGE

Everyone is interested in initial public offerings (IPOs). 
Historically, IPOs were a risky business that mostly 
institutions and high-capital individuals tapped into. But the 
1990s has brought the glamour spotlight shining on initial 
offerings, especially in the volatile high-tech arena. Now 
individuals are clamoring for a piece of the institutional 
IPO action. 

Want some historical perspective? There is no more sober, 
grounded, academic viewpoint on IPOs than that found at the 
IPOs Resource Page. A hub site of links to texts, database 
research tools, and press releases, this page is short on hype 
and long on perspective. Get a blast of history, visit the 
relevant Securities and Exchange Commission (SEC) pages, and 
see a range of nonprofit resources. You won't find tips or 
excited buzz about recent run-ups here--just a breath of 
fresh air. 

http://linux.agsm.ucla.edu/ipo/


*10. EDUSTOCK

The stock market is a more important part of daily life 
(particularly in America, but worldwide as well) than ever 
before. In recent years, investment accounts have, to a large 
degree, replaced savings accounts. While everybody is jumping 
on the bandwagon during the most enduring bull market in U.S. 
history, many individuals feel the need for basic education. 
Almost everyone has some holes in their understanding of how 
stock markets, public companies, and exchanges work. 

EduStock takes investor education seriously but provides 
tutorials with a light touch. Starting with very basic 
questions like "What is a stock?" short chapters offer 
friendly, safe explanations of the most fundamental dynamics of 
the markets. Exchange rules, mutual funds, buying, selling, 
tracking--all these issues are covered. A stock market trading 
simulation (with real, but delayed, quotes) adds hands-on fun 
to the learning. 

http://tqd.advanced.org/3088/
