Internet pure plays continue to enjoy market advantages, study finds

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Companies that were created as a result of the Internet continue to enjoy a sizable advantage over traditional bricks-and-mortar companies on Wall Street, according to a study released by the Institute for Operations Research and Management Sciences, Linthicum, Md. The study, which focused on recent public announcements and their impact on stock prices, found that ®MDSD¯®MDNM¯the stock of Internet start-ups continues to go up by more than twice the amount of traditional companies' stock when a public announcement related to the Internet is made. The study concludes that as the Internet continues to develop and eXtensible Markup Language (XML) reduces the cost of b-to-b data exchange, the public will continue to give the edge to companies with an Internet specialty or a single Internet distribution channel. Bricks-and-mortar companies maintaining two distribution channels simply can't match that advantage, the study said.
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