The actions are part of a wider effort by the National Association of Securities Dealers' regulation arm to examine the day-trading business. The NASD is the parent of the Nasdaq stock exchange.
Day trading was the rage at the peak of the dot-com boom in 1999 and early 2000 as investors flocked to make money with the rapid trading of volatile stocks. When the stock markets suffered, however, day trading lost a lot of its luster.
None of the firms involved in the actions announced Thursday admit or deny the allegations.
Landmark Securities Corp. was expelled from the Association. Former president James C. Gillock was fined $50,000 and suspended for two years as a principal and for six months in all capacities. The company was accused of using misleading advertising materials and committing regulatory violations.
Momentum Securities was censured and fined $75,000. The allegations include charges the firm failed to properly address customer credit issues, resulting in the execution of a customer's accidentally entered order to purchase $11.5 million.
CyBerBroker Inc. and former president Mark K. Stryker were both censured, fined a total of $16,000, and forced to forfeit commissions of $4,000. They were accused of allowing customers to make equity transactions when not properly registered.
Cornerstone Securities Corp. and former president Russell A. Grigsby were censured and fined $35,000. They were charged with regulatory violations, including distributing improper advertising materials.
Summit Trading and president William N. Sunshine were censured and fined a total of $20,000. Allegations include distributing misleading advertising materials and regulatory violations.