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Thursday, September 19, 2013

TD AMERITRADE | Stock of the Day - 9/19/13 | The Motley Fool

Shares of TD Ameritrade are down around 4% over the last two days after the Fed announced that it wouldn't be tapering its bond-buying program any time soon. Motley Fool Analyst Tim Hanson thinks the reason TD Ameritrade is getting punished so badly is because the company makes money from interest payments when customers don't use the money in their accounts; thus if the Fed had tapered the bond buying program, TD Ameritrade's interest rates would've gone up and the company would make more money.

But Tim isn't worried about the recent decline—he still thinks TD Ameritrade is fundamentally sound, and still thinks that eventually interest rates will go up. In the meantime, this may be an excellent entry point for long term investors.

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