The article focuses on the implication of online investing of shares. The number of do-it-yourself online investors has grown at a remarkable rate since the first electronic brokerage opened its virtual doors in 1994. According to Forrester Research Inc., with increased competition, the commissions investors pay per trade have fallen dramatically during this period, dropping on average over 50% in 1997 and leveling off in 1998. Some financial management periodicals and reporting services have evaluated e-brokerages on a number of dimensions, including ease of use, quality of research, reliability, commission rates, customer service, and reporting. A closer analysis of the online trading process reveals that, in many cases, the only thing that has changed as far as the investor is concerned is the interface, which now involves Web-based interaction. The process that investors follow in choosing an e-brokerage reflects consumer search patterns described in the economics and consumer-behavior literature. This process is influenced by four sets of characteristics under the headings: investor, external, e-brokerage, and transaction. INSET: Transaction Costs.