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Now you can get a mutual fund instead of Gas, Cash or Frequent Flyer
Miles.
NEW YORK--(BUSINESS WIRE)--June 21, 2000 via
NewsEdge Corporation -
Stockback, providers of the first ever "consumer
stock ownership" program, today launched its
Web site as the first step towards democratizing
stock ownership. The program, an
easy-to-use-online service, will enable
consumers to begin building personal savings
through a mutual fund investment, simply by
making everyday online purchases. Consumers
can shop at any one of Stockback's 75 merchant
partners and earn Stockback -- cash rewards of
up to 20 percent of every purchase. They can
redeem their Stockback reward or invest it in the
Stockback Fund, a mutual fund that will include
shares of Stockback's merchant partners and
other public companies whose shares have the
potential to increase in value.
Stockback's program represents the first ever
equity-based loyalty currency. It will fill the void
left by traditional loyalty programs - such as
expired points or miles, or confusion in
redemption, and will make mutual fund investing
available to millions of Americans.
Stockback, which received $33 million in funding
earlier this year, addresses several important
issues prevalent in today's economy:
--Personal saving is at an all time low, while debt
and spending continue to increase;
--Mutual funds, one of the most popular
investment options, remain prohibitive to a
majority of the US population. Barriers to entry
include fees, minimum balance requirements and
overall complexity.
Stockback will address these issues by providing
consumers with an easy-to-understand
investment vehicle, using a low-risk, no minimum,
no load program. Also, consumers begin to build
personal savings by simply shopping, an every
day activity with which they are already familiar
and comfortable.
"Equity ownership resonates with today's
consumer needs by providing a personal savings
alternative with compelling, immediate rewards,"
said Robert Feidelson, CEO and founder of
Stockback. "Mutual funds present such a
promising long term growth opportunity, yet for a
variety of reasons, more than 60 percent of US
consumers do not participate in them. At
Stockback, we want consumers to find reasons
to participate. Our program allows consumers to
do just that by providing Members with a
program that taps into a familiar activity -
shopping -and strips away the mystery and
hurdles around investing."
Opens Doors to Investment Opportunities
Stockback enables consumers to participate in a
mutual fund by removing the traditional
complexities of participation. To join, consumers
simply sign up on the secure Stockback Web site
at www.stockback.com - which, in essence,
opens a brokerage account within minutes. Once
they have signed up, Members can begin
shopping at any of the more than 75 Stockback
merchant partners and start earning Stockback.
Members can either cash out the reward, or
invest it in the Stockback Fund. This creates an
environment where consumers can spend and
save, through a combination of purchasing and
investing.
Stockback will also enable Members to easily
track their performance and status within the
Stockback program. At any time, Members can
access password-protected information
regarding their specific account, as well as
easy-to-understand descriptions of their
account information. This will allow Stockback
Members to learn from and participate in the
investment process as they continue to grow
their personal savings.
Provides Top Merchants with Cost-Effective
Customer Acquisition Opportunities
In addition to providing saving and investment
opportunities for its Members, Stockback also
presents its merchant partners with a
cost-effective method to acquire and retain
consumers. The Stockback Fund will include
shares of Stockback's publicly traded merchant
partners, making the Members "owners" of these
companies. Research indicates that
equity-owning consumers remain more loyal and
spend 1.5 times as much as non-equity owning
consumers. As merchants come under increasing
pressure to improve their bottom line, the
Stockback program offers a viable and compelling
opportunity to lower customer acquisition and
retention costs.
More than 75 leading retailers and service
providers have entered into strategic
relationships with Stockback. This provides
consumers with quality, brand name merchants
from whom they can make purchases. The
merchants include apparel & accessories,
computers, books & magazines, beauty & health,
online auctions, automotive, kids, sports &
leisure, home & garden, pets, music & video,
gifts & flowers, and food & beverage.
Proprietary Infrastructure Creates Scalable,
Secure Site
Stockback has built a powerful, flexible
infrastructure, which not only meets -- but also
anticipates and scales to -- the evolving needs
of both its Members and retail partners. In
addition, Stockback's privacy policy has received
certification from TRUSTe, an independent
organization dedicated to building consumer trust
and confidence in the Internet.
About Stockback
Stockback, based in New York City, was founded
in 1999 and provides the first ever "consumer
stock ownership" program. It enables average US
consumers to tap into the savings potential
offered by mutual funds by removing traditional
barriers such as minimum balance requirements,
excessive fees or load balance. The company
was co-founded by Robert Feidelson, Timothy
Parrott and Eric Peters, and is lead by a
seasoned senior management team. Stockback
received initial investments from Cap Gemini
Ernst & Young and works with leading
companies, such as Sun, Oracle, BEA/Web Logic
and VEI. More information on the company can
be obtained by calling (877) 506-2524. Visitors
can also obtain more information on the
Stockback Web site at www.stockback.com.
Securities products and investments offered
through Stockback Capital, LLC, member NASD
and SIPC. For more complete information about
the Stockback Fund, including charges and
expenses, obtain a prospectus from
services@xxxxxxxxxxxxxx Read it carefully
before you invest or forward funds.
A registration statement relating to these
securities has been filed with the Securities and
Exchange Commission but has not yet become
effective. These securities may not be sold nor
may offers to buy be accepted prior to the time
the registration statement becomes effective.
This shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be
any sale of these securities in any state in which
such offer, solicitation or sale would be unlawful
prior to registration or qualification under the
securities laws of any such state.
CONTACT: Stockback | Debbie Parrott | (212)
937-4046 | dparrott@xxxxxxxxxxxxx | or | Lois
Paul & Partners | Colleen Krenzer/Sandy Cicero |
(781) 238-5700 | colleen_krenzer@xxxxxxx |
sandy_cicero@xxxxxxx
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