A little update. AMDT (TD Ameritrade) would have been a nice stock to own with this merger/buy out/whatever; not sure what to call it, don't matter. Owning some AMDT stock could have made you a bunch of money - if you owned it last week - the pop is over.
I got an e-mail today about the deal from AMTD. The deal officially hit the tape today when the stock prices hit the market. Nothing we don't already know. Everything goes as usual until further notice. Expected.
When these firms, who cater to the retail trader went to zero cost trades, the flag should have went up. A sector to watch, especially for mergers/takeovers. Cha-ching. A tuned in retail guy could have made a bundle. Disclosure; I was no such animal. 😞
The story is, when you ask the very first question about a company you want to invest in; how do you make your money?
They can absorb the loss of trading fees by using other ways to find yield; routing fees, managed accounts, and margin loans. Or so they say/think. They might be right. There is so much money floating in the universe of debt, it has to go somewhere. The Ponzi must go on.
Jeff Skilling should be on the Mt. Rushmore of financial innovation, and should still be in prison. He helped pave the way to make GAAP overlook complete utter financial fraud by calling if forward profit which can be written to the books to lever even more money.