After getting beaten down over the past week, is it time for investors to look at TD Ameritrade, E-Trade, and Charles Schwab as investments?
Over the past week, the biggest story on Wall Street has been the raging debate over the practice of high-frequency trading. The release of Michael Lewis' exposé-style book on the subject, Flash Boys, as well as an accompanying interview with Lewis on CBS's 60 Minutes, sparked a lot of investor anger and fear on the subject. Those sentiments were compounded when the U.S. Justice Department announced that it is currently investigating the practice. This uncertainty on the market has has a strongly negative impact on the stocks of several discount brokerages, but is the sell-off warranted, or does this represent a buying opportunity?
In this segment from Monday's Where the Money Is, Motley Fool financial analysts David Hanson and Tyler Riggs discuss both sides to the argument, and take a look at how the practice of high frequency trading ties in with these discount brokerages, like TD Ameritrade. They then explore whether the uncertainty surrounding the subject has them scared off, or whether it has them interested in a potential buy.
Boost your 2014 returns with The Motley Fool's top stock
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.
David Hanson has no position in any stocks mentioned. Tyler Riggs has no position in any stocks mentioned. The Motley Fool recommends TD Ameritrade. The Motley Fool owns shares of TD Ameritrade. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.