Anyone know how secure this company's web servers, etcetera are? -Allen

Avis

E-TRADE WANTS TO SELL IPOS OVER THE INTERNET

Copyright © 1996 Nando.net Copyright © 1996 San Francisco Examiner

SAN FRANCISCO (Aug 1, 1996 00:05 a.m. EDT) -- E-Trade Securities Inc., the Palo Alto, Calif., company that sells stocks over the Internet, has asked the National Association of Securities Dealers for permission to form an investment banking division to sell initial public offerings over the Internet.

E-Trade executive vice president David Traversi said if the NASD approves his request, the company would start bringing small firms public and would also seek to co-underwrite big deals brought by large investment banks.

Traversi said E-Trade's two-fold objective aimed to create a new way to bring small companies public and give small investors a chance to buy new stock issues that usually get bought by institutional investors.

[...]

Traversi said E-Trade would also try to get listed as a co-underwriter for big IPOs, like last September's Netscape offering. In the past, small investors have complained that such big deals are sold to institutional investors, who rake in huge profits before small investors get a crack at the offering. To offer such deals online, however, E-Trade would have to get the approval of the lead underwriter on each offering.

"Right now, without naming names, there are large investment firms that have indicated an interest in having us as a co-manager" of their IPOs, Traversi said.

But before E-Trade can do anything more, its pending application to form an investment bank has to be approved by the NASD, which regulates small securities dealers. Traversi said he expected NASD approval this fall.