Spear, Leeds & Kellogg

White & Lee LLP

"Soup to Nuts" Seminar Series

-Liquidity by Hook or Crook?-

May 17, 1997

Presented by Howard B. Eisen

The Three Primary U.S. Markets

Past Tradition-

OTC------------------------------->AMEX---------------------------------->NYSE

The Paradigm Shift

Past Tradition-

OTC-------------------------------->AMEX---------------------------------->NYSE

The Recent Trend-

OTC--------------------------------------------------------------------------->NYSE

AMEX

Why The Shift?

compared to

Dealer Market (Nasdaq)

Specialist vs. Market Maker

Specialist is the public's agent on most trades	Market maker is always principal
Must be buyer/seller of last resort	Responsible for current quoteonly
Maintains limit order book executes trades between quote spread by public order priority	Only some stocks included in limited order exposure, few executions between spread
Centralized information	Fractions information

The Resulting Market Quality

	Nasdaq/NMS	AMEX	NYSE
Average Quote Spread	$0.45	$0.23	$0.19
Avg. Trade-to-Trade Price Change	$0.13	$0.07	$0.05

Other Reasons to List

For listing requirments and guidlines contact:

Spear, Leeds & Kellogg

Howard B. Eisen

Vice President

120 Broadway, New York 10271, Tel: 212-433-7064 Fax: 212-433-7250

Members of the New York Stock Exchange, Inc. & American Stock Exchange, Inc.