U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                    Form 10-Q

 X   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the quarterly period ended   June 30, 1998  

     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934
     For the transition period from ________ to ________

     Commission file number  1-10932 


                        INDIVIDUAL INVESTOR GROUP, INC.
             (Exact name of registrant as specified in its charter)

                   Delaware                            13-3487784
         (State or other jurisdiction of              (IRS Employer
          incorporation or organization)            Identification No.)

               1633 Broadway, 38th Floor, New York, New York 10019
                    (Address of principal executive offices)

                                 (212) 843-2777
                         (Registrant's telephone number)


          Check  whether the  registrant  (1) filed all  reports  required to be
     filed by Section 13 or 15(d) of the Securities  Exchange Act of 1934 during
     the past 12 months (or for such  shorter  period  that the  registrant  was
     required  to file such  reports),  and (2) has been  subject to such filing
     requirements for the past 90 days. Yes X No .

          State the  number of shares  outstanding  of each of the  registrant's
     classes of common equity, as of the latest practicable date: As of July 31,
     1998, registrant had outstanding 8,490,849 shares of Common Stock, $.01 par
     value per share.

                                       1

<PAGE>

                INDIVIDUAL INVESTOR GROUP, INC. AND SUBSIDIARIES

                                      INDEX




Part 1.   Financial Information
                                                                 Page 


      Item 1. Financial Statements

         Consolidated Condensed Balance Sheets (Unaudited)
         as of June 30, 1998 and December 31, 1997                 3

         Consolidated Condensed Statements
         of Operations (Unaudited) for the three and six
         months ended June 30, 1998 and 1997                       4

         Consolidated Condensed Statements
         of Cash Flows (Unaudited) for the six months
         ended June 30, 1998 and 1997                              5

         Notes to Consolidated Condensed

         Financial Statements (Unaudited)                          6-8


      Item 2. Management's Discussion and Analysis of
      Financial Condition and Results of Operations                9-14

Part 2. Other Information

      Item 2. Sales of Unregistered Securities                     15


      Item 4. Submission of matters to a vote of
              security holders                                     15


      Item 5. Other Information                                    15


      Item 6. Exhibits and Reports on Form 8-K                     16

Signatures                                                         17

                                       2

<PAGE>


<TABLE>
<CAPTION>
                       INDIVIDUAL INVESTOR GROUP, INC. AND SUBSIDIARIES

                             CONSOLIDATED CONDENSED BALANCE SHEETS
                                          (UNAUDITED)

<S>                                                              <C>              <C>
                                                                     June 30,      December 31,
                ASSETS                                                 1998             1997
                                                                  --------------  --------------

     Current assets:
       Cash and cash equivalents                                    $5,719,194      $3,533,622
       Accounts receivable (net of allowances of $508,052 in         2,531,705       2,993,299
               1998 and $533,693 in 1997)
       Fair market value of investment in discontinued operations    3,279,178            -
       Prepaid expenses and other current assets                       214,134         224,801

                                                                 ---------------  --------------
               Total current assets                                 11,744,211       6,751,722

     Investment in fund (Note 2)                                          -          4,037,432
     Deferred subscription expense                                     480,684         426,826
     Property and equipment - net                                      467,866         556,070
     Other assets                                                      384,917         384,917
                                                                 ===============  ==============
               Total assets                                         13,077,678      12,156,967
                                                                 ===============  ==============


               LIABILITIES AND STOCKHOLDERS' EQUITY

     Current liabilities:
       Accounts payable                                              2,994,977       2,093,987
       Accrued expenses                                                758,485         803,502
       Deferred revenue                                                352,620         343,250
                                                                 ---------------  --------------
               Total current liabilities                             4,106,082       3,240,739

     Deferred subscription revenue                                   2,457,606       2,661,129

                                                                 ---------------  --------------
               Total liabilities                                     6,563,688       5,901,868
                                                                 ---------------  --------------

     Stockholders' Equity:
       Preferred stock, $.01 par value, authorized 2,000,000 shares       -               -
       Common stock, $.01 par value; authorized
         18,000,000 shares; issued and outstanding 8,490,849            84,908          71,461
         shares in 1998 and 7,146,071 shares in 1997
       Additional paid-in capital                                   24,899,068      19,514,363
       Accumulated Deficit                                         (18,469,986)    (13,330,725)

                                                                 ---------------  --------------
               Total stockholders' equity                            6,513,990       6,255,099
                                                                 ---------------  --------------

                                                                 ===============  ==============
               Total liabilities and stockholders' equity          $13,077,678     $12,156,967
                                                                 ===============  ==============

</TABLE>


See Notes to Consolidated Condensed Financial Statements

                                       3

<PAGE>


<TABLE>
<CAPTION>

                                INDIVIDUAL INVESTOR GROUP, INC. AND SUBSIDIARIES

                                CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                                                   (UNAUDITED)

 
<S>                                           <C>            <C>             <C>             <C>
                                                Three Months Ended June 30,     Six Months Ended June 30,
                                               -----------------------------------------------------------
                                                    1998          1997           1998            1997
                                               -------------  --------------  -------------  -------------

     Revenues:
       Advertising                               $2,398,533      $2,032,030     $5,191,797     $4,361,742
       Circulation                                  918,905         940,469      1,769,861      2,119,711
       List rental and other                        344,092         246,775        653,845        583,436

                                               -------------  --------------  -------------  -------------
       Total revenues                             3,661,530       3,219,274      7,615,503      7,064,889
                                               -------------  --------------  -------------  -------------

     Operating expenses:
       Editorial, production and distribution     2,968,414       2,168,385      5,868,888      4,324,876
       Promotion and selling                      1,606,059       1,453,143      3,248,728      2,842,275
       General and administrative                 1,743,493       1,110,537      2,893,153      2,143,124
       Depreciation and amortization                 78,268          67,172        151,579        132,597

                                               -------------  --------------  -------------  -------------
       Total operating expenses                   6,396,234       4,799,237     12,162,348      9,442,872
                                               -------------  --------------  -------------  -------------


                                               -------------  --------------  -------------  -------------
     Operating loss from continuing operations   (2,734,704)     (1,579,963)    (4,546,845)    (2,377,983)
                                               -------------  --------------  -------------  -------------

     Interest income                                 13,708          20,246         43,663         31,189

                                               -------------  --------------  -------------  -------------
     Net loss from continuing operations         (2,720,996)     (1,559,717)    (4,503,182)    (2,346,794)
                                               -------------  --------------  -------------  -------------

     Discontinued operations (Note 2):
      Income (loss) from discontinued operations    187,831        243,242        (189,629)    (1,387,894)
      Loss on disposal of discontinued operations  (446,450)           -          (446,450)          -
                                               -------------  --------------  -------------  -------------
     (Loss) income from discontinued operations    (258,619)       243,242        (636,079)    (1,387,894)
                                               -------------  --------------  -------------  -------------
                                               -------------  --------------  -------------  -------------
     Net loss                                   ($2,979,615)    ($1,316,475)   ($5,139,261)   ($3,734,688)
                                               -------------  --------------  -------------  -------------

     Basic and dilutive loss per common share:
     Continuing operations                           ($0.37)         ($0.25)        ($0.62)        ($0.37)
     Discontinued operations                         ($0.04)          $0.04         ($0.09)        ($0.22)
                                               -------------  --------------  -------------  -------------
     Net loss                                        ($0.41)         ($0.21)        ($0.71)        ($0.59)
                                               -------------  --------------  -------------  -------------

     Average number of common shares used in
       computing basic and dilutive
       loss per common share                      7,286,385       6,403,673      7,245,021      6,279,607

</TABLE>


See Notes to Consolidated Condensed Financial Statements

                                       4

<PAGE>


<TABLE>
<CAPTION>

                            INDIVIDUAL INVESTOR GROUP, INC. AND SUBSIDIARIES

                            CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                               (UNAUDITED)

<S>                                                                <C>                     <C>
                                                                       Six Months Ended June 30,
                                                                    -------------------------------
                                                                        1998                 1997
                                                                    -------------     -------------

     Cash flows from operating activities:
     Net loss                                                        ($5,139,261)      ($3,734,688)
     Less:
        Loss from discontinued operations                               (636,079)       (1,387,894)
                                                                    -------------     --------------
        Loss from continuing operations                               (4,503,182)       (2,346,794)
     Reconciliation of net loss to net cash
       used in operating activities:
       Depreciation and amortization                                     151,579           132,597
       Loss on sale of equipment                                           1,258              -
       Changes in operating assets and liabilities:
          Decrease (increase) in:
            Accounts receivable                                          461,594           461,902
            Prepaid expenses and other current assets                     10,667          (152,288)
            Deferred subscription expense                                (53,858)          332,849
          Increase (decrease) in:
            Accounts payable and accrued expenses                        855,973          (592,755)
            Deferred subscription revenue                               (203,523)         (596,215)
            Deferred revenue                                               9,370           302,103
          Net cash provided by discontinued operations                   122,175           143,276
                                                                    -------------     --------------
          Net cash used in operating activities                       (3,147,947)       (2,315,325)
                                                                    -------------     --------------


     Cash flows from investing activities:
     Purchase of property and equipment                                  (65,684)         (118,925)
     Proceeds from sale of equipment                                       1,051              -
     Withdrawals from fund, net                                             -              900,000
                                                                    -------------     -------------
          Net cash (used in) provided by investing activities            (64,633)          781,075
                                                                    -------------     -------------


     Cash flows from financing activities:
     Proceeds from exercise of stock options (Note 3)                    398,152           538,229
     Proceeds from issuance of common stock (Note 5)                   5,000,000         2,250,000
                                                                    -------------     -------------
          Net cash provided by financing activities                    5,398,152         2,788,229
                                                                    -------------     -------------


     Net increase in cash and cash equivalents                         2,185,572         1,253,979

     Cash and cash equivalents, beginning of period                    3,533,622         1,544,451

                                                                    =============     =============
     Cash and cash equivalents, end of period                         $5,719,194        $2,798,430
                                                                    =============     =============

</TABLE>


     See Notes to Consolidated Condensed Financial Statements

                                       5

<PAGE>

                INDIVIDUAL INVESTOR GROUP, INC. AND SUBSIDIARIES
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                 FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
                                   (UNAUDITED)

1.   BASIS OF PRESENTATION

          The consolidated  condensed financial  statements include the accounts
     of Individual  Investor Group,  Inc. and its subsidiaries  (the "Company").
     Such financial  statements  have been prepared in accordance with generally
     accepted accounting principles for interim financial reporting and with the
     instructions  to Form 10-Q.  Accordingly,  they do not  include  all of the
     information  and  footnotes  as required by generally  accepted  accounting
     principles for annual financial  statements.  In the opinion of management,
     all adjustments  (consisting of normal  recurring  adjustments)  considered
     necessary for a fair presentation have been included. Operating results for
     the six months ended June 30, 1998 are not  necessarily  indicative  of the
     results  that may be expected for the year ending  December  31, 1998.  For
     further  information,  refer to the consolidated  financial  statements and
     footnotes  thereto  included in the  Company's  Annual  Report for the year
     ended  December 31, 1997 on Form 10-KSB.

2.   DISCONTINUED OPERATIONS

          On  April  30,  1998  the  Company's  Board of  Directors  decided  to
     discontinue  the  Company's  investment  management  services  business.  A
     wholly-owned  subsidiary,  WisdomTree  Capital  Management,  Inc. ("WTCM"),
     serves as general  partner of (and is an  investor  in) a domestic  private
     investment  fund.  The Company is also a limited  partner in the fund. As a
     result of the Board's  decision WTCM will dissolve the domestic  investment
     fund,  liquidate  its  investments  and  distribute  the net  assets to all
     investors  as  promptly  as  possible.  In July  1998 the fund  distributed
     approximately  70% of the June 30, 1998 capital balances to its partners in
     cash and securities. The remainder of the net assets will be distributed as
     soon as the  investments  held by the fund are  liquidated.  The  operating
     results  relating to investment  management  services have been  segregated
     from  continuing  operations  and  reported as a separate  line item on the
     statement of operations. As a result the Company has restated its financial
     statements for the corresponding periods of the prior year.


<TABLE>
<CAPTION>
 Operating results from discontinued operations are as follows:

 <S>                                         <C>           <C>           <C>           <C>
                                                   Quarter Ended             Six Months Ended
                                                      June 30,                    June 30,
                                                 1998          1997          1998          1997
                                                ------        ------        ------        ------
 Investment management services revenues      $  35,848     $ 176,019     $ 137,183     $ 297,193
 Net (depreciation) appreciation in fund        163,817       134,147      (276,497)   (1,531,170)
 Operating expenses                             (11,834)      (66,924)      (50,315)     (153,917)
                                              -----------   -----------   -----------  -----------
 (Loss) income from discontinued operations   $ 187,831     $ 243,242    ($ 189,629)  ($1,387,894)
                                              -----------   -----------   -----------  -----------
</TABLE>

                                       6

<PAGE>

          Under generally accepted  accounting  principles,  loss on disposal of
     discontinued  operations of $446,450  includes  actual losses from the date
     the Board  resolved  to  discontinue  the  investment  management  services
     operations,  plus a provision for additional  losses based on  managemnet's
     best  estimate  of the amount to be realized  on  dissolution  of the fund,
     including applicabe severance and legal fees.

          The  fair  market  value  of the  Company's  investment  in  the  fund
     decreased  from  $4,037,432  at December 31, 1997 to $3,279,178 at June 30,
     1998. This decrease resulted from net losses on the Company's investment in
     the fund. In July 1998 the Company received  approximately  $2.3 million of
     its  investment,  including  cash of  approximately  $1.4  million  and the
     remainder in  securities.  No assurance  can be given that the Compnay will
     realize the  remaining  amount of its  investment  in the  liquidation  the
     domestic fund.

          Selected  unaudited  financial  information for the fund as of
      June 30, 1998 and December 31, 1997 is as follows:

                                         June 30,           December 31,
                                           1998                 1997
                                          ------               ------
               Assets (at fair value)   $28,405,685           $71,245,441
               Liabilities                  268,030            32,104,302
               Partners' capital         28,137,655            39,141,139

          The net loss for the fund for the three and six months  ended June 30,
     1998 totaled $2,728,158 and $6,506,361  respectively,  as compared to a net
     gain of  $3,337,034  and net loss of  $13,301,680  for the same  periods in
     1997.

          The  Company,   through  WTCM,  also  provides  investment  management
     services to an offshore  private  investment fund. On May 21, 1998 the sole
     voting  shareholder  of the  offshore  fund,  in  consultation  with  WTCM,
     resolved to wind up the fund and appointed a liquidator  to distribute  the
     assets of the fund to its investors in accordance  with Cayman Islands law.
     In July 1998  approximately 55% of the net assets of the offshore fund were
     distributed in cash to its  investors.  The remainder of the assets will be
     distributed  promptly  following the liquidation of the investments held by
     the fund. The Company has no investment in the offshore fund.

          WTCM is also entitled to receive a special  allocation equal to 20% of
     the net income,  if any, of each of the funds (not including  income earned
     on its own  investment  with  respect  to the  domestic  fund),  subject to
     certain  limitations,  calculated at each funds year end, which is December
     31st for the domestic fund and June 30th for the offshore  fund. The amount
     of the special  allocation for the offshore fund  calculated as of June 30,
     1998 was  $109,319.  The  Company  does not  expect  to  receive  a special
     allocation  during  1998  from the  domestic  fund  based  on the  negative
     performance of that fund to date.

                                       7

<PAGE>

3.   STOCK OPTIONS

          During  the three and six  months  ended June 30,  1998,  the  Company
     granted  124,000  and  162,500  options,   respectively,  to  purchase  the
     Company's  Common  Stock;  84,938  options  were  exercised  year  to  date
     providing proceeds of $398,152 (none were exercised in the second quarter);
     and 401,810 and 421,810 options were canceled,  respectively.  Of the total
     granted,  all options were granted  under  Company stock option plans which
     expire at various dates through June 2008.

4.   LOSS PER COMMON SHARE

          Net loss per weighted average common share for the three and six month
     periods  ended  June 30,  1998 and 1997 were  computed  using the  weighted
     average  number  of common  shares  outstanding  during  each  period.  The
     exercise of stock options and warrants were not assumed in the  computation
     of loss per  common  share,  as the effect  would  have been  antidilutive.
     Previously  reported net loss per share amounts are the same as required by
     the  adoption  of  Statement  of  Financial  Accounting  Standard  No. 128,
     "Earnings Per Share," which became effective in the fourth quarter of 1997.

5.   SALE OF COMMON STOCK

          On June 26, 1998 the Company  entered into a Stock Purchase  Agreement
     with Wise  Partners,  L.P.  providing  for the sale of 1,259,842  shares of
     Common Stock for an aggregate purchase price of $5,000,000, which was based
     on the  closing  "ask"  price of the common  stock on June 25,  1998.  Wise
     Partners,  L.P.  is a limited  partnership  of which  the  Chief  Executive
     Officer of the Company, Jonathan L. Steinberg, is the General Partner.

                                       8

<PAGE>

 
               MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS


     Forward Looking Statements

          When used in this Form 10-Q and in future  filings by the Company with
     the Securities and Exchange  Commission,  the words or phrases "will likely
     result,"  "management  expects," or "the Company expects," "will continue,"
     "is  anticipated,"  "estimated"  or similar  expressions  are  intended  to
     identify  "forward-looking  statements"  within the  meaning of the Private
     Securities  Litigation  Reform Act of 1995.  Readers are  cautioned  not to
     place undue reliance on any such forward-looking  statements, each of which
     speak  only as of the date made.  Such  statements  are  subject to certain
     risks  and  uncertainties   that  could  cause  actual  results  to  differ
     materially  from  historical  earnings and those  presently  anticipated or
     projected.  The Company has no obligation to publicly release the result of
     any  revisions  which  may be made  to any  forward-looking  statements  to
     reflect  anticipated  events or  circumstances  occurring after the date of
     such statements.

     Three and Six Months Ended June 30, 1998 as Compared to the Three and
     Six Months Ended June 30, 1997

          Operating Losses From Continuing Operations

          The Company's operating loss from continuing  operations  increased by
     $1,154,741 and  $2,168,862,  to $2,734,704 and $4,546,845 for the three and
     six  months  ended  June  30,  1998,  respectively,   as  compared  to  the
     corresponding  periods  of  the  previous  fiscal  year.  The  increase  in
     operating loss relates primarily to three factors: the continued investment
     in the  development  of the  Company's  online  service,  the  decrease  in
     advertising pages and revenues for Individual  Investor magazine,  and high
     levels of  severance  and other  expenses  incurred  in the second  quarter
     relating  to  changes  in  senior  management  and  key  advertising  sales
     personnel.

          The Company's  online service,  www.iionline.com,  incurred a negative
     contribution (before deducting general and administrative ("G&A") expenses)
     of  $543,890  and  $1,004,994  for the three and six months  ended June 30,
     1998,  respectively,  as compared with $210,162 and $334,368 in 1997.  This
     increase is due to higher levels of expenses  incurred for the  development
     and redesign of the service,  offset in part by revenues  totaling $351,386
     and  $580,807  for the three and six months in 1998 (there were no revenues
     in  the  corresponding  periods  of  1997).  Individual  Investor  magazine
     incurred  a  negative  contribution  (before  deducting  G&A  expenses)  of
     $273,051 and $356,532 for the three and six months ended June 30, 1998,  as
     compared to a negative  contribution  of $7,330 and  positive  contribution
     $321,246 for the same periods in 1997.  This is primarily due to a decrease
     of advertising revenues in the 1998 periods compared to 1997, together with
     an increase in  operating  expenses  related to a larger  subscriber  base.
     General and administrative  expenses increased by 57% and 35% to $1,743,493
     and  $2,893,153  for  the  three  and  six  months  ended  June  30,  1998,
     respectively, compared to $1,110,537 and $2,143,124 for the same periods in
     1997.

                                       9

<PAGE>

          Revenues

          Revenues from continuing operations for the three and six months ended
     June 30, 1998 were  $3,661,530 and $7,615,503,  respectively,  a 14% and 8%
     increase  from the  corresponding  periods  of the  previous  fiscal  year.
     
          Advertising  revenues for the three and six months ended June 30, 1998
     were $2,398,533 and $5,191,797,  respectively, an 18% and 19% increase over
     the corresponding periods of 1997. Of this increase, the Company's website,
     www.iionline.com,  generated  $351,386  and  $580,807 for the three and six
     months  ended June 30, 1998  (there  were no revenues in the  corresponding
     periods of 1997). Ticker advertising  revenues for the three and six months
     ended June 30, 1998 were  $537,974 and $986,906,  respectively,  a 182% and
     103%  increase  from  the  corresponding  periods  in  1997.  This  relates
     primarily  to six  issues  published  in 1998  compared  to  four in  1997,
     together with 20% circulation and rate increases effected in February 1998.
     Individual Investor advertising revenues for the three and six months ended
     June 30, 1998 were  $1,509,173 and $3,624,085,  respectively,  a 18% and 6%
     decrease  from 1997.  As a result of the  increase in paid  circulation  of
     Individual  Investor,  effective  November  1997 the Company  increased its
     advertising rates by 18%.  However,  total advertising pages for Individual
     Investor  decreased  by 46 and 72 total  pages for the three and six months
     ended June 30, 1998 reflecting the fact that the sales  department was in a
     period of  transition.  The Company went without a Publisher from July 1997
     until April 1998 and also terminated it's west coast  representative in May
     1998  and  replaced  it with two in house  representatives  located  in Los
     Angeles and San Francisco.

          Circulation revenues for the three and six months ended June 30, 1998,
     were  $918,905 and  $1,769,861,  respectively,  a 2% and 17% decrease  when
     compared  to  the  corresponding  periods  of  the  previous  fiscal  year.
     Individual  Investor  subscription  revenues  for the three and six  months
     ended June 30, 1998,  were  $640,145  and  $1,224,166,  respectively,  a 7%
     increase and 4% decrease from 1997. Special Situations Report  subscription
     revenues for the three and six months ended June 30, 1998 were $103,980 and
     $197,397,  respectively, a 46% and 60% decrease when compared to 1997. This
     is a result of a decrease in paid subscribers to approximately  5,300 as of
     June 30,1998, as compared to 10,300 in June 1997. In addition,  the Company
     does not currently impose a charge for use of its online service.
 
          List rental and other revenues for the three and six months ended June
     30, 1998, were $344,092 and $653,845,  respectively, a 39% and 12% increase
     from the  corresponding  periods of the previous  fiscal year.  List rental
     revenues for the three and six months ended June 30, 1998 were $228,758 and
     $389,526,  respectively,  a 25% increase and 15% decrease  when compared to
     the  corresponding  periods of the previous  fiscal year.  The year to date
     decrease in list rental revenue is primarily attributable to reduced demand
     and the decrease in the number of subscribers to Special Situations Report.
     Other  revenues  for the  three and six  months  ended  June 30,  1998 were
     $115,334  and  $264,319,  respectively,  a 82% and 114%  increase  from the
     corresponding  periods of the previous  fiscal year. This was due primarily
     to an increase in the sale of reprints from Individual  Investor and Ticker
     magazines and increased  revenues  generated  from an affinity  credit card
     agreement.

                                       10

<PAGE>

          Operating Expenses

          Total operating expenses from continuing  operations for the three and
     six  months   ended  June  30,  1998  were   $6,396,234   and   $12,162,348
     respectively,  a 33% and 29% increase from the corresponding periods of the
     previous fiscal year.

          Editorial,  production and distribution expenses for the three and six
     months ended June 30, 1998 were $2,968,414 and $5,868,888,  respectively, a
     37% and 36% increase from the corresponding  periods of the previous fiscal
     year.  The increase is  primarily  related to the  continuing  development,
     redesign,   and   ongoing   maintenance   of   the   Company's   web   site
     www.iionline.com.  The Company incurred online expenses  totaling  $557,994
     and   $1,070,666   for  the  three  and  six  months  ended  June  30,1998,
     respectively,  a 166% and 215% increase from the  corresponding  periods of
     the  previous  fiscal year.  Management  anticipates  expenses  relating to
     online  services to  increase  as  development  continues.  Production  and
     distribution  expenses relating to all three publications for the three and
     six  months   ended  June  30,  1998  were   $1,562,776   and   $3,144,392,
     respectively, a 19% and 18% increase from 1997, primarily due to additional
     copies printed for a larger subscriber base in both Individual Investor and
     Ticker.  Editorial  costs for the three and six months  ended June 30, 1998
     were $605,227 and $1,189,721, respectively, a 23% and 24% increase from the
     corresponding  periods  of  the  previous  fiscal  year,  mostly  due to an
     increase  in  staffing  levels to aid the growth in the  Company's  current
     publications as well as its online service.

          Promotion and selling expenses for the three and six months ended June
     30,  1998  were  $1,606,059  and  $3,248,728,  respectively,  a 11% and 14%
     increase from the  corresponding  periods of the previous fiscal year. This
     increase  primarily is due to online  advertising  expenses of $337,282 and
     $515,135 for the three and six months ended June 30, 1998, respectively, as
     compared to no online  advertising  cost for the  corresponding  periods in
     1997.  Subscription  expenses  for the three and six months  ended June 30,
     1998 were  $472,527 and  $1,117,086,  respectively,  a 26% and 14% decrease
     from 1997.  Advertising  salaries,  commissions and other related costs for
     the Company's three  publications,  for the three and six months ended June
     30,  1998,  were  $729,566  and  $1,479,971,  respectively,  as compared to
     $835,046 and $1,581,942 for the same periods in 1997.

          General and administrative expenses for the three and six months ended
     June  30,  1998  increased  57% and  35%,  to  $1,743,493  and  $2,893,153,
     respectively, as compared to $1,110,537 and $2,143,124 for the same periods
     in 1997.  Substantially  all of this  increase  resulted  from  incremental
     expenses (severance,  legal fees and executive search fees) incurred in the
     second  quarter  totaling  approximately  $560,000  relating  to changes in
     senior management personnel and key advertising sales personnel.

          Depreciation  and  amortization  expense  for the three and six months
     ended  June 30,  1998,  increased  17% and 14%,  to $78,268  and  $151,579,
     respectively.   The   increase  in  1998  is  primarily   attributable   to
     depreciation  of office  furniture  and computer  equipment  purchased  for
     additional personnel hired over the past year.

          Interest  and other income for the three and six months ended June 30,
     1998 decreased 32% and increased 40% to $13,708 and $43,663,  respectively.
     These changes are  primarily due to varying  levels of cash invested by the
     Company.

                                       11

<PAGE>

          Discontinued Operations

          On  April  30,  1998  the  Company's  Board of  Directors  decided  to
     discontinue  the  Company's   investment   management   services  business.
     Accordingly,  the  operating  results  relating  to  investment  management
     services have been segregated from continuing  operations and reported as a
     separate line item on the statement of operations.

          Net loss from  discontinued  operations  for the three and six  months
     ended June 30, 1998 were $258,619 and $636,079 respectively, as compared to
     income of $243,242 and a loss of $1,387,894 for the  corresponding  periods
     in 1997. Under generally accepted accounting  principles,  loss on disposal
     of discontinued operations of $446,450 includes actual losses from the date
     the board  resolved  to  discontinue  the  investment  management  services
     business, plus a provision for additional losses based on management's best
     estimate of the amount to be realized on dissolution of the fund.

          Investment  management  services revenues for the three and six months
     ended June 30, 1998 were $200,825 and $302,159,  respectively, a 14% and 2%
     increase  from the  corresponding  periods  of the  previous  fiscal  year.
     Revenues  from  investment   management   services  are  a  combination  of
     management fees, being 1 to 1-1/2 percent of assets under management, and a
     special profit  allocation,  being 20% of defined  performance.  Management
     fees earned by the Company  totaled  $91,506 and $192,839 for the three and
     six months ended June 30, 1998,  respectively,  as compared to $114,402 and
     $177,336  for the same period in 1997.  In  addition,  the  special  profit
     allocation relating to the offshore fund, which is recognized in the second
     quarter, increased to $109,319 in 1998 from $61,617 in 1997.

          The net  depreciation  in fund  totaled  $317,942 and $758,255 for the
     three and six months ended June 30, 1998,  as compared to  appreciation  of
     $134,147 and  depreciation of $1,531,170 for the  corresponding  periods in
     1997.  Net  appreciation  (depreciation)  in fund  directly  relates to the
     realized and unrealized  earnings of the amount  invested by the Company in
     the  domestic  fund's  portfolio  which,  because  of  the  nature  of  the
     investments,  will vary  significantly from period to period and may result
     in losses as well as income. As of June 30, 1998 the value of the Company's
     investment in the domestic fund was $3,279,178.  As a result of the Board's
     decision  WTCM will  dissolve the domestic and offshore  investment  funds,
     liquidate fund  investments  and distribute the net assets to all investors
     as  promptly   as   possible.   During  July  1998  the  Company   received
     approximately $2.3 million of its investment,  including approximately $1.4
     million  in cash  and the  remainder  in  securities,  as a  result  of the
     foregoing  liquidation.  No  assurance  can be given that the Company  will
     realize the remaining  amount of it's  investment in the liquidation of the
     domestic fund.

     Net Loss

          The  Company's  net loss for the three and six  months  ended June 30,
     1998 were $2,979,615 and $5,139,261 as compared to a net loss of $1,316,475
     and $3,734,688 for the corresponding  periods in 1997. No income taxes were
     provided  in 1998 or 1997 due to the net  loss.  The net loss per  weighted
     average common  share for the three and six months ended June 30, 1998 were
     ($0.41) and ($0.71),  respectively,  as compared to ($0.21) and ($0.59) for
     the  corresponding  periods  in  1997.  The  increase  in net  loss  can be
     attributed to several factors, most notably the continued investment in the
     development of the Company's  online  service,  the decrease in advertising
     revenues  for  Individual  Investor  magazine,   several  one-time  charges
     relating to changes in senior  management and advertising  sales personnel,
     and  the  termination  of  the  Company's  investment  management  services
     operations.

                                       12

<PAGE>

          Liquidity and Capital Resources

          As of June 30,  1998,  the Company had working  capital of  $7,638,129
     including cash and cash  equivalents  totaling  $5,719,194.  As of June 30,
     1998 the fair market value of the Company's  investment in the discontinued
     operations  was   $3,279,178,   which  is  available,   subject  to  market
     fluctuations  and  liquidity,  to  provide  working  capital  to  fund  the
     Company's  operations as the domestic fund is liquidated and its assets are
     distributed  to  its  partners.  During  July  1998  the  Company  received
     approximately  $2.3 million of its  investment in cash and  securities.  No
     assurance can be given that the Company will realize the  remaining  amount
     of its investment upon final liquidation of the fund.

          On June 26, 1998 the Company  entered into a Stock Purchase  Agreement
     with Wise  Partners,  L.P.  providing  for the sale of 1,259,842  shares of
     Common Stock for an aggregate purchase price of $5,000,000, which was based
     on the  closing  "ask"  price of the common  stock on June 25,  1998.  Wise
     Partners,  L.P.  is a limited  partnership  of which  the  Chief  Executive
     Officer of the Company,  Jonathan L. Steinberg,  is the General Partner. In
     addition, during the first six months of 1998 the Company received $398,152
     from exercises of stock options.

          Management expects advertising  revenues to grow as the year continues
     with  an  improved  advertising  management  structure,   including  a  new
     publisher hired in April 1998, and other new key sales personnel as well as
     increased  awareness of Ticker in the marketplace and the effect of the new
     rate increase for Ticker  implemented in February 1998. The Company expects
     to  realize   higher   revenues   from  a  full  year  of   operations   of
     www.iionline.com, as well as generate additional revenues from this rapidly
     growing medium.

          The Company  incurred a net loss of $2,979,615  and $5,139,261 for the
     three and six  months  ended  June 30,  1998  respectively.  The  Company's
     current level of revenues are not  sufficient to cover its expenses.  Under
     its current  business  plan,  during  1998 the  Company  does not intend to
     significantly  reduce its  expenses,  expects to  continue to invest in its
     existing products and anticipates losses to continue in 1998 and into 1999.
     Therefore,  profitability  will be achieved in future  periods  only if the
     Company can substantially increase its revenues while controlling increases
     in expenses.  The Company intends to continue to increase its investment in
     its online service since it believes that this line of business  offers the
     greatest  opportunity for generating  substantial  revenues over the longer
     term. No assurance can be given that  advertising  revenues for  Individual
     Investor and Ticker will increase because higher  advertising rates may not
     be accepted by advertisers,  advertising  pages may continue to decline for
     Individual  Investor,  and the  advertising  mix may change. Although the

                                       13

<PAGE>

     Company has recently  added  key advertising  sales    personnel  personnel
     and has hired a new publisher in April 1998, no assurance can be given that
     these changes will result in  advertising  revenue  increases.  The Company
     also believes that a stock market  correction or "bear" market would affect
     its ability to sell advertising to the financial advertiser categories.  In
     addition,  although the Company has developed a specific marketing strategy
     for www.iionline.com,  no assurance can be given that this strategy will be
     successful. The Company has not yet determined the costs that it will incur
     in connection with its  anticipated  relocation to new space in early 1999,
     although it can be expected to be at a significantly higher rate per square
     foot.  Based on the Company's  business plan, the Company believes that its
     working  capital and its  investment in the fund will be sufficient to fund
     its  operations  and capital  requirements  through  1998.  Thereafter,  if
     revenues have not been  significantly  increased above current levels,  the
     Company  will  need  to  raise  additional  capital  in  order  to  sustain
     operations.  No assurance can be given as to the availability of additional
     financing  or, if available,  the terms upon which it may be obtained.  Any
     such  additional  financing may result in dilution of an investor's  equity
     investment  in the  Company.  Failure  to obtain  additional  financing  on
     favorable  terms could have a substantial  adverse  effect on the Company's
     future  ability  to  conduct  operations.  There can be no  assurance  that
     additional  losses will not be incurred in the future,  or that the Company
     will be able to operate profitably in the future.

          In August 1997 the Company  retained  the  investment  banking firm of
     Bear,  Stearns & Co.  Inc.  ("Bear  Stearns")  to  assist  the  Company  in
     exploring  strategic  initiatives to enhance shareholder value, the process
     for which is continuing.  With the assistance of Bear Stearns,  the Company
     has focused on various alternatives including identifying,  evaluating, and
     approaching  potential  strategic partners seeking investment  positions in
     the Company's financial information services business.

Year 2000

          The  Company  has  evaluated  the  potential  impact of the  situation
     commonly  referred to as the "Year 2000 Issue"  ("Y2K").  Y2K  concerns the
     inability of information systems,  primarily computer software programs, to
     properly recognize and process date sensitive  information  relating to the
     year 2000 and beyond. Many of the world's computer systems currently record
     years in a  two-digit  format.  Such  computer  systems  will be  unable to
     properly interpret dates beyond the year 1999, which could lead to business
     disruptions  in the  U.S  and  internationally.  The  potential  costs  and
     uncertainties  associated  with Y2K will  depend  on a number  of  factors,
     including  software,  hardware  and the nature of the  industry  in which a
     company operates.

          To ensure that the Company's  computer systems are Y2K compliant,  the
     Company has been  reviewing  each of its systems and programs over the past
     year.  The Company is also working with all of its major  external  vendors
     and suppliers to assess their compliance efforts and the Company's exposure
     to them. Any entities which the Company interacts with electronically, such
     as its outside subscription fulfillment service,  customers,  creditors and
     banks, can have an effect on its abilities to address this issue.

          As a result of researching  the Company's  hardware and software,  and
     discussing Y2K with the Company's  external  vendors and suppliers,  it has
     been determined  that, based upon available  information,  additional costs
     associated  with Y2K  should not have a  material  effect on the  Company's
     operating results or financial condition.

                                       14

<PAGE>


<TABLE>
<CAPTION>
                                          INDIVIDUAL INVESTOR GROUP, INC. AND SUBSIDIARIES


 
                                                   PART II- OTHER INFORMATION


ITEM 2 - Sales of Unregistered Securities

<S>         <C>                <C>            <C>                           <C>             <C>

- ----------  ------------------  ------------  ---------------------------    -------------  -----------------------
                                              Consideration received and     Exemption from  If option, warrant or
Date of     Title of security   Number Sold   description of underwriting    registration    convertible security, terms
Sale                                          or other discounts to market   claimed         of exercise or conversion
                                              price afforded to purchasers
- ----------  ------------------  ------------  ---------------------------    -------------  ------------------------

4/98 -6/98  options to purchase     124,000   options granted - no           Section 4(2)    vesting over a period of
            common stock granted              consideration received by                      three to five years from
            to employees,                     Company until exercise                         date of grant, subject to
            directors and                                                                     certain conditions of
            consultants                                                                       continued service;
                                                                                              exercisable for a period
                                                                                              lasting ten years from date
                                                                                              of grant at exercise prices
                                                                                              ranging from $3.9375 to $7.25
06/26/98    Sale of Securities to  1,259,842  The Company received           Section 4(2)
            Wise Partners, L.P.               $5,000,000 in consideration
                                              for these shares

- ----------  -------------------  -----------  --------------------------     -------------  ------------------------- 

</TABLE>



ITEM 4 - Submission of Matters to a Vote of Security Holders
 
          On June 17, 1998, the Company held the annual meeting of  stockholders
     for the purpose  electing two  directors of the Company,  Bruce L. Sokoloff
     and Peter M. Ziemba,  for a term of three years. The shares of Common Stock
     voted on the matter were as follows 6,512,504 shares were cast in favor and
     54,060 shares were withheld for the election of both directors.


ITEM 5 - Other Information

         Notice to Stockholders Regarding 1999 Annual Meeting of Stockholders:

          Pursuant  to  Rule  14a-4  promulgated  by  the  Securities   Exchange
     Commission,  stockholders are advised that the Company's management will be
     permitted  to exercise  discretionary  voting  authority  under  proxies it
     solicits and obtains for the Company's 1999 Annual Meeting of  Stockholders
     with respect to any proposal  presented by a  stockholder  at such meeting,
     without any discussion of the proposal in the company's proxy statement for
     such meeting,  unless the Company  receives  notice of such proposal at its
     principal office in New York, New York not later than March 24, 1999.

                                       15

<PAGE>


ITEM 6 - Exhibits and Reports on Form 8-K

     (a) Exhibits

     10.1   Agreement with Robert Schmidt dated May 25,1998

     10.2   Agreement with Scot Rosenblum dated June 20, 1998

     10.3   Stock Purchase Agreement, dated June 26, 1998 between Registrant and
            Wise Partners L.P. (Incorporated by reference from Exhibit 10.3 
            filed with the Schedule 13-D of Wise Partners L.P. on July 6, 1998)

     27     Financial Data Schedule June 30, 1998

     27.3   Financial Data Schedule June 30, 1997

     (b)    The Company did not file any reports on Form 8-K during the Quarter
            Ended June 30, 1998

                                       16

<PAGE>


                                   SIGNATURES


In accordance with the requirements of the Securities Exchange Act of 1934, the
Registrant caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.



DATE: August 13, 1998


                      INDIVIDUAL INVESTOR GROUP, INC. (Registrant)




                      By:     /s/ Jonathan L. Steinberg
                              ----------------------------------
                              Jonathan Steinberg, CEO and Chairman of the Board




                      By:     /s/ Henry G. Clark
                              ----------------------------------
                              Henry G. Clark, Vice President Finance
                              (Principal Financial and Accounting Officer)

                                       17

<PAGE>


                                  EXHIBIT INDEX


Exhibit No.  Description                                              Page


   10.1      Agreement with Robert Schmidt dated May 25,1998          19-30

   10.2      Agreement with Scot Rosenblum dated June 20, 1998        31

   10.3      Stock Purchase Agreement, dated June 26, 1998
             between Registrant and Wise Partners L.P.
             (Incorporated by reference from Exhibit 10.3 
             filed with the Schedule 13-D of Wise Partners L.P.
             on July 6, 1998)
 

   27        Financial Data Schedule June 30, 1998                    32

   27.3      Financial Data Schedule June 30, 1997                    33

                                       18

<PAGE>

                                    AGREEMENT

     AGREEMENT,  dated May 20, 1998, by and between  Individual  Investor Group,
Inc.,  a  corporation  organized  and  existing  under  the laws of the State of
Delaware with an address at 1633  Broadway,  38th Floor,  N.Y.,  N.Y. 10019 (the
"Company")  and Robert H. Schmidt,  an  individual  residing in the State of New
York with an address at 322 East 57th  Street,  Apt.  4A, New York,  N.Y.  10022
("Schmidt").

     WHEREAS,  Schmidt has been  employed by the Company since July 27, 1994, as
President,  Chief Operating  Officer,  and a Director of the Company pursuant to
that certain  Employment  Agreement  dated as of July 27, 1994 (the  "Employment
Agreement");  the Company and  Schmidt  are the  parties to that  certain  Stock
Option  Agreement  dated May 9, 1997 (the "Option  Agreement");  the Company and
Schmidt are the parties to that certain  Indemnification  Agreement  dated as of
July 27, 1994 (the  "Indemnification  Agreement"),  and; the Company and Schmidt
now mutually  desire to provide for the orderly  termination  of the  employment
relationship which existed between them and otherwise make provision  respecting
certain economic and other matters relating to the Employment Agreement,  Option
Agreement and Indemnification Agreement.

     NOW THEREFORE, in consideration of the mutual promises and covenants herein
contained, the parties hereto agree as follows:

l.   Termination of Employment.

     (A)  Termination.  Effective  as of the date  hereof,  Schmidt  resigns his
positions as President,  Chief Operating  Officer,  and Director of the Company,
and all other  offices and  capacities  held by him with the Company  and/or any
subsidiary  of the  Company.  Effective  as of the close of business on June 15,
1998 (the "Termination  Date"),  Schmidt's employment by the Company (and/or any
subsidiary  of the  Company)  is hereby  terminated.  Schmidt may take two weeks
vacation  between the date of this Agreement and the Termination  Date.  Schmidt
shall not be compensated for any unused vacation.

     (B)  Transition.  Between the date of this  Agreement  and the  Termination
Date,  Schmidt shall use his best efforts to assist in the orderly transition of
all  matters  and  files to such  persons  as  Jonathan  Steinberg  may  direct.
Subsequent  to the  Termination  Date,  Schmidt  shall make  himself  reasonably
available  to the  Company  or its  agents for  consultation  regarding  matters
relating to Schmidt's work at the Company.

                                       19

<PAGE>

2.   Payments, Benefits and Other Arrangements.

     (A)  Employment  Compensation.  The  Company  shall  make  regular  payroll
payments to Schmidt on May 30, 1998 and June 15, 1998 at the current rate of pay
($112,500 per annum), and shall pay one months' expense allowance ($8,333.33) on
May 30, 1998 and one-half of the one-months'  expense  allowance  ($4,166.67) on
June 15, 1998.

     (B) Severance Payment. Conditioned upon the delivery by the escrow agent of
the  Releases  from each party  hereto to the other  described in Section (A) of
this  Agreement,  the  Company  shall make a payment to Schmidt in the amount of
Fifty-One Thousand Dollars Five Hundred ($51,500), net of applicable withholding
taxes (the  "Payment"),  on or before July 1, 1998 (the "Payment  Date").  After
making  the  Payment  to  Schmidt,  the  Company  shall have no other or further
obligation to Schmidt arising from his employment, except as provided herein.

     (C) Option Agreement. Notwithstanding anything to the contrary contained in
the Option  Agreement,  which is hereby  amended  to the extent  that any of the
following  provisions  are  inconsistent  with the existing  terms of the Option
Agreement,  it is  acknowledged  and agreed that: (i) Schmidt shall be vested in
options to purchase a total of 498,335 shares of the common stock of the Company
(the "Vested Options"),  including  specifically the options vested as indicated
on the Option Schedule as follows:


          Number of Shares              Exercise Price

          300,000                       5.25

          145,001                       5.75

          26,667                        5.88

          26,667                        7.50

(ii) the Vested Options shall not become exercisable until 90 days following the
Termination Date and shall remain  exercisable  through the close of business on
the fourth (4th)  anniversary of the date they first become  exercisable and not
thereafter;  and (iii) the termination of employment  effected by this Agreement
shall not cause the  acceleration  of  vesting  of any other  options  under the
Option  Agreement and Schmidt waives and  relinquishes  the right to vest in any
other options included in the Option Agreement other than the Vested Options.

                                       20

<PAGE>

     (D) Medical and Dental Benefits.  The medical coverage  heretofore afforded
Schmidt by the Company  will be paid by the Company  through  December 31, 1998.
Thereafter  Schmidt may continue  coverage for 18 months pursuant to COBRA rules
and  regulations  at his own  expense.  The  Company  will  promptly  after  the
Termination Date furnish Schmidt with a "HIPA"  certificate and otherwise comply
with all  applicable  laws for the  purpose of  allowing  Schmidt to transfer to
another  health plan without a break or  limitation  in  coverage.  In the event
Schmidt elects COBRA coverage he shall reimburse the Company the total amount of
the monthly  premium rate for each month coverage is continued  beyond  December
1998.

     (E) Expenses.  The Company  shall  reimburse  Schmidt for regular  business
expenses  incurred prior to the Termination Date on behalf of the Company and in
accordance with regular Company procedures,  provided that no items in excess of
$50 shall be included without prior approval of Jonathan Steinberg.

     (F) Certain Matters. Chatsworth Capital Corporation ("Chatsworth") acted as
a finder with respect to the Company's introduction of the INDI 500 to the Trust
Department of Merrill Lynch Pierce Fenner & Smith, Inc. ("Merrill"). The Company
is currently  negotiating an understanding with Merrill.  The Company intends to
resolve any outstanding  items in a proposed written agreement and to accurately
document and enter the agreement  between the Company and Chatsworth  respecting
Chatsworth's  role and  compensation  in  certain  of the  income  which  may be
received from Merrill through September 17, 2001. The Company  acknowledges that
Schmidt, under a separate agreement between Schmidt and Chatsworth,  has a right
to a Twenty-Five (25%) share in any income the Company may be required to pay to
Chatsworth;  the Company shall have no obligation  with respect to  Chatsworth's
payment  obligations  to Schmidt.,  but the Company shall permit,  and shall not
challenge, Schmidt's participation in any payments to Chatsworth by the Company.

     (G) Indemnification  Agreement.  Schmidt's "Corporate Status", as such term
is defined in the Indemnification Agreement, is terminated effective the date of
this Agreement.

3.   Mutual Release, Non-Disparagement and Confidentiality.

     (A) Coincident  with the execution of this Agreement and  conditioned  upon
Schmidt  making the  deliveries  required in this  paragraph,  the Company shall
deliver to Schmidt a Release  executed in the form attached hereto as Exhibit A,
and;  conditioned  upon  receipt of the  Release  from the  Company to  Schmidt,
Schmidt  shall  deliver to the Company a Release  executed in the form  attached
hereto as Exhibit B; both such  Releases  shall be held in escrow  until May 29,
1998 unless  Schmidt  earlier  rescinds this Agreement  and/or his Release,  the
effect of such  recision  being return of both the Releases and  termination  of
this  Agreement  such that it shall have been of no force or effect,  and absent
such  recision  the escrow  agent shall  simultaneously  deliver the  respective
Releases from each party to the other on or before June 5, 1998. Lori Katz, Esq.
of the Battle Fowler firm shall serve as escrow agent.

                                       21

<PAGE>

     (B) The  Company  and  Schmidt  agree that the  termination  of  employment
effected hereunder is by mutual agreement. The Company shall refer all inquiries
regarding  Schmidt from prospective  employees or other third parties seeking to
establish a business  relationship  with  Schmidt to Jonathan  Steinberg  or his
successor,  if any, as Chief Executive  Officer.  Mr. Steinberg shall respond to
all such  inquiries  consistent  with the  foregoing  statement.  Following  the
execution of this  Agreement,  either the Company or Schmidt may make disclosure
to Company  personnel not already privy to information  regarding this Agreement
regarding  the fact that  Schmidt's  employment  has been  terminated  by mutual
agreement.  Schmidt  agrees  that he shall  take no  action  and  shall  make no
statement or comment which may, directly or indirectly, disparage the reputation
of the Company and/or its subsidiaries and/or its or their officers,  directors,
personnel and/or  publications.  The Company shall take no action and shall make
no  statement  or comment  which may,  directly  or  indirectly,  disparage  the
reputation of Schmidt.

     (C) The  Company  and  Schmidt  agree to keep the  terms of this  Agreement
confidential,  except that (i) Schmidt may make  disclosure  of the terms to his
immediate  family members and may disclose any terms that have  previously  been
disclosed by the Company, (ii) the Company may make such disclosure as is deemed
necessary to comply with  applicable  securities  laws or as may be requested by
regulatory  authorities  (including any press release and/or  inclusion of up to
this entire Agreement in any filing with the S.E.C.), and (iii) either party may
make disclosure to its professional advisors or in any legal proceedings brought
by either party to enforce its rights hereunder.

4.   Miscellaneous.

     (A) Binding  Effect.  This Agreement shall be binding upon and inure to the
benefit of the parties, their heirs, executors,  administrators,  successors and
assigns (if any) permitted under  paragraph 4(J), and the parties,  their heirs,
executors,  administrators,  and  successors  and  assigns,  shall  execute  any
instruments  in writing  which may be  necessary  or proper in carrying  out its
purposes and intent and any and all necessary governmental or regulatory filings
with regard thereto.

     (B)  Choice  of Law,  Jurisdiction  and  Venue.  This  Agreement  shall  be
construed  under  and in  accordance  with  the laws of the  State of New  York,
without  regard to choice of law  principles.  The parties  agree that the State
Courts of the State of New York shall have sole and exclusive  jurisdiction over
any action brought to enforce the terms of this Agreement and the parties hereto
consent to the personal jurisdiction and venue of the courts of the State of New
York in the County of New York for such purposes.

                                       22

<PAGE>

     (C) Survival.  The  agreements  and  representations  and warranties of the
parties hereto contained in this Agreement shall survive any termination of this
Agreement.  The  agreements  and  obligations  of the Company  contained in this
Agreement  shall  survive  any  merger,  acquisition,  change of control  and/or
bankruptcy or other insolvency of the Company.

     (D) Confidentiality.  Schmidt agrees that he shall not divulge, furnish, or
make accessible to anyone  including  present or former employees of the Company
(other  than in the  regular  course of  business  of the  Company  prior to the
Termination  Date and after the  Termination  Date only in  response to specific
inquiry  made  by a  duly  authorized  representative  of  the  Company  seeking
consultation  with Schmidt as  contemplated  in paragraph 1(B)) any knowledge or
information  with  respect  to  confidential  or secret  processes,  inventions,
discoveries,  improvements,  formulae, plans, material, devices, ideas, or other
know-how, whether intellectual property or not, with respect to any confidential
or secret  engineering,  development,  or research  work or with  respect to any
other  confidential  or secret  aspects of the  Company's  business  (including,
without  limitation,  customer lists,  subscription  lists,  supplier lists, and
pricing arrangements with customers, subscribers, or suppliers). Schmidt further
agrees  that he shall not make use of, nor permit to be used,  any  confidential
notes, memoranda, specifications, programs, data, information or other materials
of any nature whether oral or written relating to any matter within the scope of
the  business  of the  Company  or  concerning  any of its  dealings  or affairs
otherwise  than for the benefit of the Company,  it being agreed that any of the
foregoing shall be and remain the sole and exclusive property of the Company and
that  immediately  upon the termination of Schmidt's  employment,  Schmidt shall
deliver any or all copies of the foregoing to the Company.

     (E) Work for Hire.  Schmidt  agrees  that all  ideas,  marketing  concepts,
slogans,  advertising  campaigns,  characters,  proposals and plans  invented or
developed  by him which  relate  directly or  indirectly  to the business of the
Company  or  arose  out of his  employment  with the  Company  or the use of the
Company's  property  or  resources  including,  without  limitation,  any ideas,
proposals and plans which may be copyrighted, trademarked, patented or otherwise
protected  (collectively,  "Intellectual Property") are and will be the property
of  the  Company.   Schmidt  understands  and  agrees  that  any  and  all  such
Intellectual Property constitute a "work for hire" under the U.S. Copyright Law.
In the event  any such  Intellectual  Property  is not  regarded  as a "work for
hire,"  Schmidt  hereby  assigns to the Company the sole and exclusive  right to
such Intellectual Property.  Schmidt agrees that upon request of the Company, he
will execute and deliver any and all documents or instruments and take any other

                                       23

<PAGE>

action which the Company shall deem  necessary to assign to and vest  completely
in the Company all right, title and interest in such Intellectual  Property,  to
perfect trademark,  copyright and patent protection with respect thereto,  or to
otherwise  protect the Company's trade secrets and proprietary  interest in such
Intellectual Property.  Schmidt will, at the request and expense of the Company,
sign and execute all such deeds or  documents,  and  provide  such  cooperation,
including truthful testimony,  as the Company and its duly authorized agents may
reasonably require: (i) to apply for, obtain and vest in the name of the Company
alone (unless the Company otherwise directs) trademarks,  copyrights, patents or
other  analogous  protection  in any  country  throughout  the world and when so
obtained  or vested  to renew  and  restore  the  same;  and (ii) to defend  any
opposition  proceedings  in  respect  of such  applications  and any  opposition
proceedings  or petitions or  applications  for  revocation of such  trademarks,
copyrights,  patents or other  analogous  protection.  In the event Schmidt does
not,  within  five (5) days,  execute  and  deliver  such  documents  reasonably
necessary  to  vest  in the  Company  all  right,  title  and  interest  in such
Intellectual  Property,  Schmidt hereby irrevocably  designates and appoints the
Company  and its duly  authorized  officers  and agents as  Schmidt's  agent and
attorney-in-fact,  to act for and in  Schmidt's  behalf and stead to execute and
file any such application or applications and to do all other lawfully permitted
acts to further the prosecution and issuance of trademarks,  copyright,  patents
or other analogous protection thereon with the same legal force and effect as if
executed by Schmidt.

     (F)  Schmidt  agrees  that  for a  period  of One (1)  year  following  the
Termination  Date he will not:  (i) in any  geographic  area  where the  Company
conduct business,  engage or participate in, directly or indirectly  (whether as
an officer, director, employee, partner, consultant, holder of an equity or debt
investment,  lender,  or in any  other  manner or  capacity),  the  business  of
financial publishing, or; (ii) solicit any officer, director, employee, or agent
of the Company to become an officer,  director,  employee,  or agent of Schmidt,
his affiliates, or anyone else.

     (G) If either the  Company or Schmidt  commits a breach,  or  threatens  to
commit a breach,  of any of the provisions of Sections  3(B),  3(C) or 4(D), the
other shall have the right and remedy:

          (i) to have the provisions of this Agreement specifically enforced, it
being  acknowledged  that  any such  breach  or  threatened  breach  will  cause
irreparable  injury and that money damages will not provide an adequate  remedy;
and

          (ii)  with  respect  to a  breach  by  Schmidt  of the  provisions  of
paragraphs  4(D),  4(E), or 4(F), the Company may require Schmidt to account for
and  pay  over to the  Company  all  compensation,  profits,  monies,  accruals,
increments,  or other benefits (collectively  "Benefits") derived or received by
Schmidt  as a result  of any  transactions  constituting  a breach of any of the
provisions  of paragraphs  4(D),  4(E),  or 4(F),  and Schmidt  hereby agrees to
account for and pay over such Benefits to the Company.

                                       24

<PAGE>

     (H)  Headings.   The  headings   used  in  this   Agreement  are  used  for
administrative  purposes only and do not  constitute  substantive  matters to be
considered in construing the terms of this Agreement.

     (I) Notice. Any notice herein provided for shall be in writing and shall be
deemed  duly  given when  delivered  to the other to whom it is  addressed.  Any
notice herein provided for shall be sent to the address first above indicated in
this  Agreement or such other  address as either party may indicate by notice to
the other.

     (J) Merger. This Agreement terminates the Employment Agreement,  and amends
the Option Agreement,  and this Agreement and the Option Agreement,  as amended,
and the Indemnification  Agreement embody the entire understanding and agreement
of the parties hereto in relation to the subject matter hereof,  and no promise,
condition,  representation or warranty, express or implied, not herein set forth
shall bind any party hereto.  None of the terms and conditions of this Agreement
may be changed,  modified,  waived or canceled  orally or otherwise  except by a
writing signed by both the parties hereto, specifying such change, modification,
waiver or cancellation. A waiver at any time of compliance with any of the terms
and  conditions  of this  Agreement  shall  not be  considered  a  modification,
cancellation  or  waiver  of such  terms  and  conditions  of any  preceding  or
succeeding breach thereof unless expressly so stated.

     (K)  Non-Assignability.  This Agreement shall only be assignable by Schmidt
to his successors or assigns in the event of death or incapacity, and shall only
be assignable and shall be assigned by the Company to any legal successor.

     (L) Attorney  Fees and Penalty.  If either party seeks redress in the State
Courts of the State of New York to enforce its rights under this Agreement,  the
party  prevailing in such action shall be entitled to its reasonable  attorney's
fees and expenses as deemed  appropriate by the court,  including those relating
to the  prosecution  or  resistance of any  proceeding  in all appellate  courts
before or after final decision of a court of competent jurisdiction.

                                       25

<PAGE>

     (M) Age  Discrimination  Claims.  Schmidt  acknowledges  that  he has  been
represented by an attorney in connection  with the  preparation and execution of
this  Agreement.  Schmidt  acknowledges  that he has been  advised that he has a
period  of  Twenty-One  (21) days  within  which to  consider  the terms of this
Agreement and his Release prior to signing this Agreement and Release;  however,
Schmidt has voluntarily chosen to sign this Agreement prior to the end of the 21
day period.  Schmidt  has the right to rescind  this  Agreement  and the Release
given in  connection  herewith,  in their  entirety,  for a period  of Seven (7)
calendar days following the date of this Agreement and the Release by delivering
written  notice of such recision to the Chief  Executive  Officer of the Company
and the escrow agent named in Section 3(A) of this Agreement within such period,
in which event this Agreement shall have no further force and effect.









     IN WITNESS WHEREOF,  this Agreement has been duly executed and delivered by
and on behalf of the parties hereto as of the date first hereinabove written and
each such party executes this Agreement on the  understanding and agreement that
each has hereby bound and obligated itself hereby.


                              INDIVIDUAL INVESTOR GROUP, INC.


                           By: _______________________________
                               Jonathan Steinberg, Chairman & CEO



                               _______________________________
                               Robert H. Schmidt

                                       26

<PAGE>

                                                 Exhibit A


                                     RELEASE

     To all to whom these Presents shall come or may Concern, Know That:

     Individual Investor Group, Inc. ("IIG"), a corporation  organized under the
laws  of  the  State  of  Delaware,   WisdomTree  Capital  Management,  Inc.,  a
corporation organized and existing under the laws of the State of New York, I.I.
Strategic Consultants, Inc., a corporation organized and existing under the laws
of the  State  of  Delaware,  WisdomTree  Administration,  Inc.,  a  corporation
organized  and  existing  under  the  laws  of  the  State  of  Delaware,   I.I.
Interactive,  Inc., a corporation  organized and existing  under the laws of the
State of Delaware,  Advanced Marketing Ventures,  Inc., a corporation  organized
and  existing  under  the laws of the  State  of  Delaware,  WisdomTree  Capital
Advisors,  LLC, a limited liability corporation organized and existing under the
laws of the State of New York,  and each being fully  authorized to execute this
Release (hereinafter collectively referred to as the RELEASORS), in exchange for
consideration  heretofore  received by IIG and each of the RELEASORS the receipt
and sufficiency of which is hereby  acknowledged,  do hereby release and forever
discharge  Robert  H.  Schmidt,  an  individual   (hereinafter  referred  to  as
RELEASEE), RELEASEE's heirs, executors,  administrators,  successors and assigns
from all actions, causes of action, suits, debts, dues, sums of money, accounts,
reckonings,  bonds, bills,  specialties,  covenants,  contracts,  controversies,
agreements,   promises,  variances,  trespasses,  damages,  judgments,  extents,
executions,  claims,  and demands of any kind whatsoever,  in law,  admiralty or
equity,  which against the  RELEASEE,  any or all of the RELEASORS or RELEASORS'
successors  and assigns ever had, now have or hereafter  can,  shall or may have
for,  upon,  or by  reason of any  matter,  cause or thing  whatsoever  from the
beginning  of the  world  to the day of the date of this  RELEASE  if and to the
extent  such  matter,  cause or thing  arises  from any act or failure to act by
Robert H. Schmidt that he demonstrates was known to the  non-employee  Directors
of IIG on or prior to May 20, 1998;  except for matters  arising out of a breach
of the obligations under an Agreement, dated May 20, 1998 between IIG and Robert
H. Schmidt.

     Whenever the text hereof  requires,  the use of the  singular  number shall
include the appropriate  plural number as the text of the within  instrument may
require. This RELEASE may not be changed orally.

     IN WITNESS  WHEREOF,  each of the undersigned as RELEASOR,  has caused this
RELEASE to be executed by its duly authorized officer on May 20, 1998.

Individual  Investor Group, Inc.           WisdomTree Capital Management, Inc.


By:_______________________________         By:_______________________________
   Jonathan Steinberg, Chairman & CEO         Jonathan Steinberg, Chairman & CEO

I.I. Strategic Consultants, Inc.           WisdomTree Administration, Inc.


By:_______________________________         By:_______________________________
   Jonathan Steinberg, Chairman & CEO         Jonathan Steinberg, Chairman & CEO


I.I. Interactive, Inc.                     Advanced Marketing Ventures, Inc.


By:_______________________________         By:_______________________________
   Jonathan Steinberg, Chairman & CEO        Jonathan Steinberg, Chairman & CEO


                                           WisdomTree Capital Advisors, L.L.C.

                                           By: ______________________________
                                             Jonathan Steinberg, Chairman & CEO

                                       27

<PAGE>

                                 ACKNOWLEDGMENTS


State of New York   )
                    ) ss.:
County of New York  )


     On the 20th day of May, 1998, before me personally came Jonathan  Steinberg
to me  known,  who being by me duly  sworn,  did  depose  and say that he has an
office address at c/o  Individual  Investor  Group,  Inc.,  1633 Broadway,  38th
Floor,  New York,  New York 10019;  that he is the Chairman and Chief  Executive
Officer of each of the  corporations  on whose  behalf he has executed the above
instrument;  and that he signed his name  thereto by  authority  of the Board of
Directors of each of the said corporations.


                                   _______________________________
                                            Notary Public


                                                       Exhibit B

                                       28

<PAGE>

                                     RELEASE

     To all to whom these Presents shall come or may Concern, Know That:

     Robert H.  Schmidt,  an  individual  residing  in the State of New York and
being fully  authorized  and  competent  to execute  this  Release  (hereinafter
referred to as RELEASOR),  in exchange for consideration  heretofore received by
RELEASOR  the  receipt and  sufficiency  of which is hereby  acknowledged,  does
hereby release and forever discharge  Individual Investor Group, Inc. ("IIG"), a
corporation  organized  and  existing  under the laws of the State of  Delaware,
WisdomTree Capital Management,  Inc., a corporation organized and existing under
the  laws  of the  State  of New  York,  I.I.  Strategic  Consultants,  Inc.,  a
corporation  organized  and  existing  under the laws of the State of  Delaware,
WisdomTree Administration,  Inc., a corporation organized and existing under the
laws of the State of Delaware,  I.I. Interactive,  Inc., a corporation organized
and  existing  under  the laws of the  State  of  Delaware,  Advanced  Marketing
Ventures, Inc., a corporation organized and existing under the laws of the State
of Delaware,  WisdomTree Capital Advisors,  LLC, a limited liability corporation
organized  and  existing  under the laws of the  State of New  York,  WisdomTree
Associates, L.P., a limited partnership organized and existing under the laws of
the State of New York, and WisdomTree  Offshore,  Ltd., a Company  organized and
existing  under the laws of the  Cayman  Islands,  and each of their  respective
successors and assigns, officers,  directors,  employees and agents, and each of
their  respective  heirs,  executors,  administrators,  successors  and  assigns
(hereinafter  referenced to as RELEASEES),  from, all actions, causes of action,
suits,  debts,  dues,  sums  of  money,  accounts,   reckonings,  bonds,  bills,
specialties,   covenants,  contracts,   controversies,   agreements,   promises,
variances,  trespasses,  damages, judgements,  extents, executions,  claims, and
demands of any kind whatsoever,  in law, admiralty or equity,  which against the
RELEASEES,   the  RELEASOR,   RELEASOR'S,   heirs,  executors,   administrators,
successors  and assigns ever had, now have or hereafter  can,  shall or may have
for,  upon,  or by  reason of any  matter,  cause or thing  whatsoever  from the
beginning  of the  world  to the day of the  date of this  RELEASE,  except  for
matters arising out of any breach of the obligations  under an Agreement,  dated
May 20, 1998 between IIG and RELEASOR.

     Whenever the text hereof requires, the use of singular number shall include
the appropriate  plural number as the text of the within instrument may require.
This RELEASE may not be changed orally.

     IN WITNESS WHEREOF, the undersigned as RELEASOR,  has executed this RELEASE
May 20, 1998.


                                   ---------------------------------
                                        Robert H. Schmidt

                                       29

<PAGE>

                                 ACKNOWLEDGMENT

State of New York   )
               ) ss.:
County of New York  )



     On the 20th day of May, 1998,  before me personally  came Robert H. Schmidt
to me  known  to be the  person  described  in and who  executed  the  foregoing
instrument, and acknowledged that he executed the same.


                                   ----------------------------------
                                             Notary Public

                                       30

<PAGE>

                         INDIVIDUAL INVESTOR GROUP, INC.
                                  1633 Broadway
                            New York, New York 10019

                                                              As of June 5, 1998
Mr. Scot Rosenblum

Dear Scot:

     This  letter  will  confirm  certain  matters  relating  to your  voluntary
termination of employment by Individual  Investor Group, Inc.  (ACompany@) as of
June 23, 1998 ("Termination Date").

     Your signature  below will confirm,  effective as of the date hereof,  your
resignation  as a director of the Company and all  subsidiaries  of the Company,
and your resignation, effective as of the Termination Date, as an officer of the
Company and all subsidiaries of the Company.

     Pursuant to Section 3 (A) of the Stock Option Agreement, dated as of May 9,
1997,  between the Company and you  ("Option  Agreement"),  upon your  voluntary
termination of employment,  the portions of the Option (as defined in the Option
Agreement) that are exercisable as of the Termination  Date may be exercised for
a period of one year thereafter or until the expiration of the Exercise  Period,
whichever is shorter, and the portions of the Option that are not exercisable as
of  the  Termination  Date  immediately   terminate  on  the  Termination  Date.
Notwithstanding the provisions of the Option Agreement,  (a) you hereby agree as
follows:  (i) you will  not  sell any  shares  of  Common  Stock of the  Company
issuable upon exercise of the Option ("Option Shares") until September 23, 1998;
(ii)  subject to clause (v) below,  you will not sell more than  25,0000  Option
Shares between September 23, 1998 and December 22, 1998; (iii) subject to clause
(v) below,  you will not sell more than 75,000  Option  Shares  (plus any Option
Shares you were  permitted  to sell  pursuant  to clause  (ii) but did not sell)
between  December 23, 1998 and June 22, 1999;  (iv) after June 22, 1999 you will
not have any  contractual  restriction  on the sale of  Option  Shares;  and (v)
provided,  however,  that if on any one day the trading  volume of the Company's
Common Stock  (exclusive  of any sale of Option Shares by you on that day) shall
exceed  200,000,  any sale of  Option  Shares by you on that day and on the next
trading  day shall not be counted  toward the  volume  limitations  set forth in
clauses (ii) and (iii);  and (b) the Company  hereby agrees that the portions of
the Option that are exercisable as of the  Termination  Date may be exercised by
you until the earlier of (i)  September  22, 2002, or ten years from the date of
grant of the  applicable  portion  of the  Option  as  indicated  on the  Option
Schedule annexed to the Option Agreement.

         This letter shall constitute an amendment to the Option Agreement.

         Please confirm your agreement below.


                                           Very truly yours,
                                           Individual Investor Group, Inc.


                                           _________________________________
                                           By: Jonathan Steinberg
                                           Chairman and Chief Executive Officer



ACCEPTED AND AGREED:


_______________________
Scot Rosenblum

                                       31

<PAGE>






<TABLE> <S> <C>


<ARTICLE>                     5

<CIK>                         0000880631
<NAME>                        INDIVIDUAL INVESTOR GROUP, INC.

       
<S>                                          <C>

<PERIOD-TYPE>                                  6-MOS
<FISCAL-YEAR-END>                              DEC-31-1998
<PERIOD-START>                                 JAN-01-1998
<PERIOD-END>                                   JUN-30-1998

<CASH>                                         5,719,194
<SECURITIES>                                   3,279,178
<RECEIVABLES>                                  2,531,705
<ALLOWANCES>                                     508,052
<INVENTORY>                                            0
<CURRENT-ASSETS>                              11,744,211
<PP&E>                                         1,004,362
<DEPRECIATION>                                   151,579
<TOTAL-ASSETS>                                13,077,678
<CURRENT-LIABILITIES>                          4,106,082
<BONDS>                                                0
<PREFERRED-MANDATORY>                                  0
<PREFERRED>                                            0
<COMMON>                                          84,908
<OTHER-SE>                                     6,429,082
<TOTAL-LIABILITY-AND-EQUITY>                  13,077,678
<SALES>                                        7,615,503
<TOTAL-REVENUES>                               7,615,503
<CGS>                                          5,868,888
<TOTAL-COSTS>                                 12,162,348
<OTHER-EXPENSES>                                       0
<LOSS-PROVISION>                                       0
<INTEREST-EXPENSE>                                     0
<INCOME-PRETAX>                               (4,503,182)
<INCOME-TAX>                                           0
<INCOME-CONTINUING>                           (4,503,182)
<DISCONTINUED>                                  (636,079)
<EXTRAORDINARY>                                        0
<CHANGES>                                              0
<NET-INCOME>                                  (5,139,261)
<EPS-PRIMARY>                                      (0.71)
<EPS-DILUTED>                                      (0.71)

        


</TABLE>






<TABLE> <S> <C>


<ARTICLE>                     5

<CIK>                         0000880631
<NAME>                        INDIVIDUAL INVESTOR INC.


       
<S>                                           <C>

<PERIOD-TYPE>                                  6-MOS
<FISCAL-YEAR-END>                              DEC-31-1997
<PERIOD-START>                                 JAN-01-1997
<PERIOD-END>                                   JUN-30-1997


<CASH>                                         2,798,430
<SECURITIES>                                           0
<RECEIVABLES>                                  2,694,738
<ALLOWANCES>                                     575,368
<INVENTORY>                                            0
<CURRENT-ASSETS>                               5,214,834
<PP&E>                                         1,152,229
<DEPRECIATION>                                   447,522
<TOTAL-ASSETS>                                 9,447,976
<CURRENT-LIABILITIES>                          2,447,239
<BONDS>                                                0
<PREFERRED-MANDATORY>                                  0
<PREFERRED>                                            0
<COMMON>                                          66,107
<OTHER-SE>                                     4,202,108
<TOTAL-LIABILITY-AND-EQUITY>                   4,268,215
<SALES>                                        7,064,889
<TOTAL-REVENUES>                               7,064,889
<CGS>                                          4,324,876
<TOTAL-COSTS>                                  9,442,872
<OTHER-EXPENSES>                                       0
<LOSS-PROVISION>                                       0
<INTEREST-EXPENSE>                                     0
<INCOME-PRETAX>                              (2,346,794)
<INCOME-TAX>                                           0
<INCOME-CONTINUING>                          (2,346,794)
<DISCONTINUED>                               (1,387,894)
<EXTRAORDINARY>                                       0
<CHANGES>                                             0
<NET-INCOME>                                 (3,734,688)
<EPS-PRIMARY>                                     (0.59)
<EPS-DILUTED>                                     (0.59)

        



</TABLE>