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Quotes of the Week

November 16, 1998

Other investment manias come and go. The Internet stock mania, however, is a bit like having crazy relatives who keep coming back to visit--and each time, their behavior seems more outrageous than before . . . The numbers are becoming so large in this latest Internet stock trading craze that it's hard to imagine that the money changing hands is real. It feels more like a big Monopoly game, complete with multicolored play currency.
Tom Petruno in "Market Beat" from the Los Angeles Times (11/11/98 and 11/15/98)

Market makers are no longer necessary because public investors --the ultimate purveyors of liquidity can enter orders directly. . . Domestic bond markets, domestic currency markets, and the stock markets in other countries all operate without an affirmative obligation and without adverse consequences. . . Market makers need no regulatory obligations and should not receive special privileges. The existence of market makers should depend on the quality of their market-making services, not on some privileged position provided in return for an ephemeral affirmative obligation.
Hans R. Stroll in "Reconsidering the Affimative Obligation of Market Makers" in the Financial Analysts Journal (September/October 1998)

I've said this over and over, you should never make a purchase of a stock or any type of investment based on something you read over the Internet."
John Stark (SEC) in Heard on the Street $$ from The Wall Street Journal (11/12/98)

Prior quote
Never, ever, make an investment based solely on what you read in an online newsletter or Internet bulletin board, especially if the investment involves a small, thinly-traded company that isn't well known.
Nancy M. Smith (also of the SEC) in SEC Stock Promoters Fraud Sweep (10/28/98)

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