The Net Hits The Big Time

GMAC's bond sale is a milestone

On Sept. 27, General Motors Acceptance Corp. started marketing $500 million in bonds through Chicago Corp. What makes this otherwise mundane bond issue noteworthy is that it is being done on the Internet. A Web-based bulletin board, dubbed Direct Access Notes and run by the regional investment bank, allows investors to download the medium-term note's prospectus and use an interactive bond calculator. The 60 brokerages that are selling the bonds can view a GMAC multimedia road show via the Web. As for investors, they still must purchase the bonds through one of these brokerages.

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