Also covered are a cybersecurity Series A, Drunk Elephant’s acquisition, and a media purchase.
1. Big brokerages are racing to $0 commissions
Charles Schwab, TD Ameritrade, E*Trade, and Ally Bank all announced plans to drop trade commissions to $0. Paired with Interactive Brokers’ similar announcement 2 weeks ago, 5 major brokerages are set to give up their legacy fee-based trade business model. Stock prices of these companies have dropped following the news, collectively draining nearly $20B of market cap from September 27th to October 7th.