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Show A-16 The Park Record Wednesday, January 26, 2000 , Talking Shop Trading stock on line changed how many invest by Ronald Field RECORD GUEST WRITER The advent of the Internet and on-line stock trading has changed the way many of us invest. While commissions have declined significantly, sig-nificantly, access to your account has become available 24 7 and research is at your fingertips, trading stocks on-line is not as easy as the commercials on TV want you to believe. When placing trades with a broker, he or she might be able to help you to decide just what it is vou want to do... buy or sell? How many shares'? At what price? But placing a trade over the Internet shifts the responsibility onto the shoulders of the inestors. And that responsibility-can responsibility-can be an awesome one. This is something vou must be w illing to Intel getting Continued from A-15 ed "m" word (not "Microsoft." but what the Justice Dept. claims Microsoft is), the only time it seems that Intel has been spurred on to bring better products to market quickly is when there is competition in the marketplace. AMD brought competition. Cym did. Transmeta will. Intel lowered low-ered prices, brought on more features fea-tures and brought them to market more quickly with AMD and Cyrix competing for the consumer's dollar, the same will happen with Transmeta. Miy Crusoe is so smart Transmeta took an interesting approach to the marketplace: it is aiming for Intel's Achilles heel -mobile processors. In the past, Intel has produced desktop processors, then scaled back voltage (extending battery life and lowering heat production) to produce the mobile versions. As each generation has been produced, engineering the mobile version has become more and more difficult. Transmeta made a leap of revolution, revo-lution, not evolution. Addressing the challenges posed ULil o .JLliJ 0GG5 are in. And movlri out fast! Don't miss our 7-how 0GG5i Aprto StoTruASate! Huge selection, hctudhg UGG5 Austrata sheepskin footwear for snow andstreet.The excitement starts at3rtf. WnSt.StoreOW F i - z Cut this out and stick it g uses mm saw murta ? mi i accept before you trade on-line. There are advantages and disadvantages dis-advantages to trading with a broker bro-ker as well as to trading on-line. The broker can help you determine deter-mine entry and exit strategies, help you with research and other aspects of money management. But that service does carry a price tag... higher commissions. By eliminating the broker, you can reduce your commission costs, but you are sacrificing service. ser-vice. If the service is not w hat you need, then perhaps an on-line account is right for you. If you are considering trading on-line, there are a few things you need to know. First, let's cover the types of orders that you might place. On-line brokers such as competition by mobile computing to develop smaller form-factor processors for appliances as well as chips that support sup-port longer battery life. Transmeta's better new idea here is that the company com-pany is not going to be using silicon to solve the problem. They will be using software to solve it." The Crusoe is the first smart microprocessor. It learns about your programs and learns to improve its performance over time. As it learns, it actually learns to save battery power. The Crusoe has a special deep-sleep deep-sleep mode that uses only 20 milliwatts milli-watts of power. If you can do that, you can come back weeks later, pick up your machine and it's still running. run-ning. Intel would love to be able to make that boast, but they haverA been able to get there with hardware for several years now. You gotta love a little startup like Transmeta, even if it is something some-thing of an elephant-vs.-the-flea contest. Until the company either makes it or gets buried by Goliath Intel, the consumer will benefit because Intel has no choice but to lower prices and try to match features quickly. JN& a. mi i r. . Iff c; V - - C - J) , people who love the rnowtahs as r, i much as you do. Whether yotiYehto fomAy fun, fresh ot or competition, "1ke, pros at Jans w steer you right. on your forehead as a reminder! If s a sale January im 3-iobjh , 518 Main Street, Etrade. Ameritrade and scores of others promote low commission rates. Rates will range between $5 and $12. These rates are typically typi-cally for "market" orders. A "market" order instructs the brokerage bro-kerage firm to buy or sell stock without regard to price. Let's assume you want to buy 100 shares of America On Line. Let's also assume that the current closing price for America Online is $62. If you transmit an order to your on-line broker to buy 100 shares of America Online at the market, there is no guarantee that you will pay $62. You could pay more or you could pay less because a market order tells your broker to execute the trade as soon as possible with no regard to price. When placing market orders on a rapidly moving stock, the price at which you buy or sell (your "fill" price) could be quite a bit different than the most recent historical price. You must be willing to accept whatever price is given to you since you have not placed any limits on the price you are willing to accept. How ever, if you do not w ant to pay more than $62 per share for America Online, you would place a "limit" order with your broker. This instructs the broker to buy the same 100 shares of the stock but not to pay more than $62 per share... thus putting a limit on the price you are willing to pay for a stock. Why do brokers offer a lower commission on a market order as compared to a limit order? It is Local convention properties have reported that the following groups will meet during the week of Jan. 30 - Feb. 5 in Park City. Information is supplied by the Park City ChamberBureau. Croups Attendees Groups Attendees PCMC Pediatric N.A.B.M. 100 Emergency Medicine 250 McDonalds 48 Damon-Nelson Travel Co. 50 Anchor Packaging 35 Donaldson Lufkin Jenrette 75 Home Financial 35 Whibbs 28 Coulson Oil Co. 54 Marriott Vacation Club 10 Brian, Kangas, Faulk 9 Fidelity Investments 50 Medwinter Housing 105 U of U Phvsical VIedicine Molecular Pscvchiatry 38 Rehabilitation 15 Fresno Ski Club 15 U of U Surgery Pathology 30 CIBC 26 Career College Ass'n. 35 Morgan Stanley 150 Ross & Babcock Travel 8 IDI " 17 Event DesignPC Design 20 World Cup 170 Alex Y2K Bar Mitzvah 17 Mississippi Baptist 100 American Ass'n. of Feline 85 Open Application Group 20 Bay Pt. Travel 142 Teamco 30 Total 1,767 This is an 11-percent increase SALE Notjustthebestbrands.bwt vou don't want to miss, j Park City (435) es-3C32i because there is another potential poten-tial source of revenue to the brokerage bro-kerage firm when you trade stocks as market orders... or "at the market" as compared to the limit order. This revenue source can 'be substantial to the firm and, as a result, the lower commissions com-missions are used as an incentive to get investors to buy and sell at the market. This secondary source of income is from what is called the "spread". The "spread" of a stock is the difference between the current "bid" and "offer" price of a stock. The "bid price is the highest high-est price that someone is willing to pay for the stock at any given moment in time while the "ask" price is the lowest price that someone is will to sell the stock for at that same moment in time. There is always a difference between the bid and the ask price of a stock. Back to our AOL example, if you are willing to pay $62 and no one else is willing to pay more at that moment in time, the price you are willing to pay (or the bid) would be highest. Should the lowest price that someone would be willing to sell the stock for be $62V. the "spread"... which is the difference differ-ence between the besr bid ($62) and the best offer ($62.25) would be (or 25 cents). Anyone who wants to buy at the market at this point in time would pay $62.25. Anyone who would w ant to sell at the market at the same point in time would sell for $62.00. The difference is Please see On-line, A-17 over the same week last year. ?3) SAVE MONEY ON SALARIES & BENEFITS BY OUTSOURCING YOUR BOOKKEEPING NEEDS Contact Maria Graybill of"Debits& Credits" Specializing in computerized bookkeeping services for Small Businesses Homeowners' Associations Quicken and Quick Book applications Start-up and maintenance of chart of accounts Minimize your accounting and tax preparation fees ILiBfiCllITr Move Hi 00 yews o... LoctfO News Loo! Views 0 " Bade I Tlis Program Rate Point Down ll Imta Bank On 30 yr Fix 8.300 . 0 5 15yrFix 7.700 0 5 lyrARM 6.350 0 10 26 T-BH Chase Manhattan Mortgage 30yrFix 8125 0 5 Home Equity 8.500 0 5 Jumbo ARM 8.000 0 5 2'5 T-BtH Countrywide Funding 30yrFix 8.250 0 10 15yrFix 7.750 0 5 31 ARM 6.875 0 10 26 T-Bil Crossland Mortgage 30yrFix 8.250 0 5 15yrFix 7.875 0 10 71JumboARM 8.000 0 10 .16 T-BiH Rrst Colony Mortgage 30yrFix 8.250 0 5 15yrFix 7.875 0 10 30 yr FHAVA 8.500 0 5 Key Mortgage 30yrFix 8.500 0 5 30 yr Jumbo 8.875 0 5 5 yr Balloon 8.500 0 10 North American Mortgage 30yrFix 8.125 0 5 15yrFix 7.625 0 5 51 yr ARM 7.750 0 10 2 T-BiH Triad Financial 30yrFix 8.375 0 5 15yrFix 8.125 0 5 lyrARM 6.875 0 5 26 T-BiD Washington Mutual 30yrFix 8.125 0 3 15yrFix 7.750 0 3 lyrARM 6.625 0 3 15 T-BtH Zions Mortgage 30yrFix 8.250 0 5 15yrFix 7.750 0 5 71 ARM 7.625 0 10 26 T-BiH The Utah Mortgage Purse includes up-to-date information on home loan rates charged by Salt Lake City area lenders. The information was accurate on Monday, January 24, but is subject to change without notice. Closing points: One point equals 1 percent of me loan amount. Most lenders also require private pri-vate mortgage insurance with down payments of less than 20 percent. Also, most lenders charge loan processing fees up to $300, credit and appraisal fees up to $400, origination fees of 1 along with other closing costs. Index: T-BiH Yield on 1 yr T-BiH, COR Cost of Funds Index. 11th 0 11th District Cost of Funds, LIBOR London InterBank Offered Rate. Source: Mountain Express Mortgage (435) 647-3700 (435)615-8654 PO Box 487 Park City, UT, 84060 j Sirmnf film r Cmmty mmt ISM PARK CITY, UTAH Poo 1 |
