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.
