Independents' Day On Wall Street

Business Wire, Nov 24, 2008

This year's collapse of several major financial institutions--A.I.G., Bear Stearns, Fannie Mae, Freddie Mac, Lehman Brothers, Merrill Lynch, Wachovia, and Washington Mutual--has earned September 2008 comparisons to October 1929.

"Last month's U.S. government bailout seems to be just the beginning of a major paradigm shift on Wall Street, one that could see the independent brokerage model rival the dominance of investment banks and major brokerage houses," says Mark "Goldie" Goldwasser, CEO of National Holdings Corporation (OTCBB: NHLD), the third-fastest growing independent broker-dealer in the United States. "Most independent broker-dealers are small enough to give clients the individualized attention that they deserve, but have the resources necessary to provide products and services competitive with the very largest firms."

The independent contractor model grew out of the insurance business as large insurance companies realized they could broaden distribution through independent salesmen. In the mid-90s, insurance companies began allowing agents to conduct securities brokerage under their corporate umbrellas. Wall Street was quick to follow: over the past ten years, the independent contractor model has outpaced employee brokerage as many financial investment firms have limited the brokers' freedom to operate.

"Advancements in IT and clearing have enabled independent brokerage firms and brokers to offer quality services with reduced overhead," says Goldwasser. "In return for covering their own direct operating overhead, these independent contractors receive a higher payout."

Founded sixty years ago, National Holdings manages, through its subsidiaries, over seven hundred registered reps in approximately one hundred offices throughout the U.S. and abroad. National provides CNBC's daily "Fair Value Report" and offers access to over fourteen thousand mutual funds, independent money manager accounts, best of breed hedge fund managers, private equity and venture capital funds, and real estate limited partnerships.

"In addition to experience, brokers have an entrepreneurial spirit to operate their own business and profit from their ambition. As independent contractors, they're left to choose where, when, and how to do business," says Mr. Goldwasser. "From Wall Street to Main Street, the independent broker-dealer model offers new, more efficient, more autonomous ways for financial professionals to conduct business." Visit www.nationalsecurities.com to learn more.