Topic: How To Invest

The Successful Investor Hotline – Friday, November 29, 2019

Article Excerpt

TORONTO-DOMINION BANK, $76.59, Toronto symbol TD, is still a buy. The bank owns roughly 43% of TD Ameritrade Holding Corp. (Nasdaq symbol AMTD), one of the largest online brokerage firms in the U.S. This week, TD Ameritrade accepted an all-stock takeover offer from its chief competitor, Charles Schwab Corp. (New York symbol SCHW). Under the terms of the deal, TD Ameritrade investors will receive 1.0837 shares in Schwab for every share they currently own. The combined firm will become the largest discount broker in the U.S., with 24 million clients and more than $5 trillion in client assets. TD Bank will own 13.4% of the combined firm, but control just 9.9% of the voting power. Schwab investors will own about 69%, with other TD Ameritrade investors holding the remaining 18%. Currently, TD Ameritrade deposits excess cash in its clients’ accounts with TD Bank. In the past year, TD Bank earned fee income of $275 million U.S. from those deposits. To put that amount in perspective,…

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