Notice

From the NYSE:
The New York Stock Exchange is open from Monday through Friday 9:30 a.m. to 4:00 p.m. EST and will observe the following holidays:

Our NASDAQ Securities Execution Agents have notified Freedom Investments, Inc. that special trading circumstances are occurring in the OTC (over the counter) market that may affect customer orders. Specifically, it is possible that orders placed on stocks that are in a "Fast Market" will not receive an execution that reflects the market at the time the order was placed.

A "Fast Market" exists when the number of orders entering the NASDAQ system exceeds the market maker's ability to maintain current quotes and execute orders within the normal 90 second time frame. Generally, stocks trading in a fast market will disable the "NASDAQ automated execution system." When this situation occurs, trades are handled manually by the market makers on a "first come, first served" basis. According to the market makers, orders currently received for stocks in a fast market may take as long as 4 minutes or longer to be executed.

Please enter your trades accordingly.

For more information on the increase in price volatility and volume in many stocks and the brokers response to these market conditions., please view the NASD web site at "nasdr.com" If you have any additional questions concerning these recent events, please contact Freedom's customer service department at (800) 944-4033.
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IRA Fee Schedule Revised
(reprinted from the January 1999 issue)

Fahnestock and Co. Inc., our clearing firm, has advised Freedom Investments that the fee structure for self-directed IRAs has been revised. Beginning in 1999, the annual fee for each IRA will be $35. In addition, this fee will be charged to the account in February each year. IRA Account holders have the option to submit a check to cover the fees; however the check must be received by Freedom by February 1. Any checks received after that date will be returned to the client. The only way to "reimburse" the IRA for the fee that has been debited would be to consider it a 1998 IRA contribution (if received by April 15) or a 1999 IRA contribution.

IMPORTANT!!

Due to recent changes implemented by the exchanges, Freedom Investments, Inc. is required to have a properly executed "Market Data Agreement" for each customer receiving a real-time quote.

Currently there are two ways a customer can receive a Real Time quote:

1) Complete a Market Data Agreement and receive Real Time individual quotes and Real Time snap quotes and at a cost of $25 per month, non-professional, for each account listed.

Or,

2) Complete a Market Data Agreement and receive delayed individual quotes, but Real Time snap quotes at no charge.

NOTE: a "snap quote" is the quote given prior to submitting an order to Freedom via the TradeFlash software using the "On Line – Real time link" option on the transmission control screen or Freedom’s Internet site.

Included with your statement is a letter describing snap quotes and

our real-time quotes policy. If you wish to receive real-time quotes, you MUST return the letter to us. If you wish to receive Real Time quotes, check one of the boxes on the letter. (Delayed quotes require no documents.) Then return the completed document to Freedom Investments and contact our customer service department to request a market data agreement.

If you have any questions concerning the Market Data Agreement or the fees, please contact Freedom’s customer service at (800) 944-4033 or fax (800) 830-1855 or E-mail: support@freedominvestments.com.

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Education Corner

(Editor's Note): To read the complete article or for additional helpful information, go to the web site of the New York Stock Exchange: http://www.nyse.com

You and the Investment World - The New York Stock Exchange
http://www.nyse.com/public/educat/uinvestw/toc.htm   Reprinted with permission of NYSE

In addition to events surrounding a specific industry or company, analysts carefully watch what they call economic indicators - general trends that signal changes in the economy.

A key indicator is the change in the rate of economic growth as measured by the Gross National Product (GNP). GNP measures the total production of goods and services in our economy. If it is rising, then short-term business prospects are improving. Another important indicator is the inflation rate. Inflation occurs when prices are rising rapidly. During an inflationary period, a company's costs may rise faster than it can increase its prices; so its profits shrink.

Also, the inflation rate has a major influence on another key indicator, interest rates. Rising interest rates mean that the government, businesses and consumers must pay more to borrow money. As a result, the government's budget deficit increases, businesses may delay their plans for new projects, and consumers don't spend as much. That can set the stage for a recession - a period of slow economic growth.

Analysts also monitor the U.S. budget deficit - the gap between the money the federal government takes in and the money it spends. When the deficit grows, the government has to increase its borrowing of money that would otherwise be available to businesses to expand and consumers to spend.

Many other indicators signal changes in the economy. Among them are stock prices, unemployment rates (the percentage of U.S. workers who can't find jobs), and changes in the value of the dollar (the amount of foreign currencies that can be purchased for each U.S. dollar).

These indicators are more than just numbers. They point to changes in the way ordinary people spend their money - and, in turn, how the economy is likely to perform. If unemployment rates are falling, or if people are getting good values for their money, they are probably going to feel optimistic about the economy. They are more likely to spend money, benefiting companies and stock prices.

Watch for the continuation of this series in future issues of TORCHLIGHT. - editor

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Nothing herein is to be construed as a solicitation of any transaction. The information presented has been obtained from sources considered to be reliable, but it is not purported to be complete or without error. Freedom Investments Inc. and Fahnestock & Co. Inc. and/or the officers and directors, and/or members of their families, may at times have positions in any securities mentioned.