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Continued: Schafer: Market changes doomed small stocks

  • Article by: LEE SCHAFER , Star Tribune
  • Last update: May 18, 2013 - 6:03 PM

At 3 cents per share commission rates, an institutional broker can’t afford to place a phone call on MGC Diagnostics’ stock or even let an intern write a research report.

Advocates for consumers might take a look at 20 years of changes in the capital markets with some satisfaction. Now we have a fully transparent market without collusion among over-the-counter stock traders, excessive markups on thinly traded stocks, unjustified commissions for brokers or research analysts shilling for investment banking clients.

But we also are going to have a world without anyone left in it who is paid to care about small-company stocks.

 

lee.schafer@startribune.com • 612-673-4302

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