| BUSINESSWEEK ONLINE : APRIL 12, 1999 ISSUE | ||||||||
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| PERSONAL BUSINESS
Handling Your Stock Trade When you place an order to buy or sell stocks on the Nasdaq market, your broker can choose one of three ways to execute your trade: Keep It If your broker's firm also has a dealer, or market-making unit, your order can be executed within the company. The firm keeps all the commission and profits from your trade. Swap It Two regional broker-dealers may make markets in different stocks. When you order a stock that your broker's market maker doesn't handle, it sends the order to its correspondent firm. No money changes hands, but each dealer profits from handling the other's order. Sell It Your broker may strike a deal to send all its orders to a particular wholesale market maker. Your broker gets a rebate--usually about 1 cents per share--for retail market orders. The payment may be used to keep your commission down. DATA: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC., BUSINESS WEEK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ |
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