Is The Brokerage Industry On Death Watch?

Investopedia

Written by Rebecca Lipman

Thanks to a negative and incredibly low volume trading period, CNNMoney says hundreds of small firms are on death watch. Simply put, less trades means there are less fees and commissions a firm can take in. After long spells, a company can cease to remain profitable.
Trading volume is the number of shares or contracts that have exchanged hands in a given period, usually over a day's trading.
Trading volumes have mostly been on the decline since 2007, and already three small but well-known firms (WJB Capital Group, Ticonderoga Securities and Kaufman Brothers) have had to shut down. It remains to be seen how many more firms will be forced to close their doors... read more.


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