FRAMINGHAM (03/02/2000) - NASD Regulation Inc., the regulatory arm of the National Association of Securities Dealers Inc., has charged eight online day-trading companies and individuals with violations ranging from misuse of customer funds to improper lending and using misleading advertising.
The following companies and individuals were charged: 1800Daytrade.com Inc. in Richardson, Texas; Donnelly & Co. in Midland, Texas; Self Trading Securities Inc. in Austin, Texas; Choice Investments Inc., also in Austin; LaSalle St.
Securities LLC in Chicago; Heath A. Butler and Don A. Rouzan in New Orleans; Addison Securities Inc. in Dallas; and James Han.
To address the risks presented by day trading, NASD Regulation has proposed rules in the areas of risk disclosure, margin requirements and appropriate behavior for day traders.
Jupiter Buys Analysts
New York-based Jupiter Communications Inc., an Internet market research firm, plans to spend $50.6 million to acquire two California firms: Internet Research Group Inc. in Los Altos and Net Market Makers Inc. in Berkeley. Each company provides strategic and consulting services and employs about two dozen people.
States Lose Millions in Tax Dollars to InternetBecause of U.S. laws governing the taxation of purchases, state governments lost $525 million in uncollected Internet sales taxes last year, according to a report from Cambridge, Mass.-based Forrester Research Inc.
Purchases generally aren't taxed if the buyer is in a state where the seller has no physical presence.
However, the Forrester study showed that people don't seem to have strong objections to paying sales tax. Indeed, survey respondents said they would rather avoid shipping charges than taxes, according to Forrester.
Online British Bank
Britain's Abbey National PLC will launch a new online bank later this year called Cahoot, which will offer traditional banking services as well as other products, such as videos, to be offered by Cahoot's business partners.
Abbey National officials said they will spend around 200 million pounds ($322 million) developing Cahoot, and they said they expect it to have 200,000 customers by the end of its first year.