Are Superdeep Discounters As Cheap As They Seem?

Listening to Everett F. Lang, one almost can't help thinking he belongs astride the prow of a boat or rattling a saber before a crowd of infidels: "Our goal is to be the place America trades its stock!" he cries. "We've carved the niche, and we'll defend it mightily!" Lang, the president of Manhattan-based National Discount Brokers (NDB), is indeed thigh-deep in a battle--a fierce price war being waged by the rapidly growing breed of superdeep-discount brokers. It's an assault that has traditional discounters fighting to maintain market share at a time when trading volume and commission revenue are down. And while consumers may win lower commissions, they sometimes wind up paying a higher price for their stock.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.