The Growth of Web-Based Investment

Abstract

When Merill Lynch announced its entry into online brokering, analysts stated that Internet-based investing had reached a milestone. This article explores the development of Internet-based investment transactions and businesses as well as the differences between the business models of pure Internet brokers and those of full-service brokerage houses. Although this industry is in very early stages of development, it will eventually approach a modified form of zero-cost industry like many of the Internet service providers.