State Securities Official Warns of Online Trading, Investing
Potts, Gregory, THE JOURNAL RECORD
Irving Faught, administrator of the Oklahoma Securities Commission, wants people to be aware of the risks of online investing and trading.
"There is no question that the Internet and online investing have leveled the playing field between Wall Street and Main Street and driven transaction costs down," said Faught. "However, investors need to understand that technology is not infallible, particularly in start-up industry. Investors also need to recognize that there is a big difference between online investing and online trading."
Faught urged investors not to be confused by the allure of quick profits from online trading. "Profiting from day trading takes special training and happens to only a lucky few skilled securities professionals," said Faught. An estimated 7.5 million investors have online brokerage accounts, and the number is expected to top 10 million next year. As a result of the dramatic growth in online brokerage accounts, investors have recently experienced some much-publicized outages and computer glitches at major online brokerage firms. The U.S. Securities and Exchange Commission Chairman Arthur Levitt recently warned investors that they can end up paying more for a stock than they thought because of system delays and wild price swings. Four members of the U.S. House Commerce Committee sent a letter to the SEC stating their concern about whether there are adequate measures to regulate online investing. They also asked the General Accounting Office to look into doing a report on these activities. There is currently an investigation in New York into online trading firms to discover, among other things, details about their technology capacity, contingency plans, customer complaints and how orders are processed and executed. People Quail Creek Bank has named William Dubberstein a vice president in the commercial lending department. The 40-years area banking veteran began his banking career at Will Rogers Bank. He was at Charter Bank previous to coming to Quail Creek. Will Rogers has promoted Royce G. Wilmouth to vice president and loan officer of its Moore branch. Wilmouth brings more than 30 years of experience in the financial industry to Will Rogers, having served 16 years in Moore. MidFirst Bank has named Brad Brantley a mortgage account executive for the north Oklahoma City area. In his new role, Brantley will address the mortgage lending needs of customers at eight MidFirst offices in north Oklahoma and Edmond. Brantley previously served as a commercial real estate loan analyst for MidFirst's income property division, and as a claims reviewer for Default Management of Midland Mortgage, sister company of MidFirst. …