Why Shares of TD Ameritrade Are Soaring Today
Shares of TD Ameritrade Holding (NASDAQ: AMTD) jumped more than 17% on Thursday morning following reports that the company is in talks to be acquired by Charles Schwab (NYSE: SCHW). A deal would continue the rapid-fire pace of consolidation among online brokerages as competition has eaten into profitability.
TD Ameritrade shares were down more than 30% year to date prior to Thursday's jump, with investors worried that intense competition among discount brokerages would curtail profitability. Last month, Charles Schwab turned up the heat on the competition when it announced no-fee trading, sending shares of rivals, including TD Ameritrade, plunging.
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Source Fool.com
