Charles Schwab’s $0 Fee World Reshapes Online-Brokerage Industry

The video discusses Schwab's acquisition of TD Ameritrade in a $26 billion all-stock deal, highlighting the impact of zero commission fees and economies of scale. It explores how Schwab's strategic pricing led to a significant market shift, allowing them to save $6.8 billion. The deal's potential antitrust scrutiny is also mentioned.

What was the primary factor that enabled the Schwab and TD Ameritrade merger?

• High commission fees

• Government incentives

• Zero-fee environment

• Increased market competition

What percentage of the market share did Schwab hold before the merger?

• 50%

• 30%

• 70%

• 20%

Why might the Schwab and TD Ameritrade merger face antitrust scrutiny?

• Because of high commission fees

• Due to lack of investor interest

• Due to the large combined market share

• Because of government regulations

How did Schwab make the acquisition of TD Ameritrade more affordable?

• By merging with another company first

• By selling off assets

• By reducing their commission fees to zero

• By increasing their commission fees

How much did Schwab save by reducing its commission fees before acquiring TD Ameritrade?

• $8.1 billion

• $6.8 billion

• $4.3 billion

• $2.5 billion