E*TRADE and Ameritrade offer Internet stock-trading services at a very low price compared to traditional brokers. Both

Question:

E*TRADE and Ameritrade offer Internet stock-trading services at a very low price compared to traditional brokers. Both companies have been growing very rapidly in recent years. What internal and external factors influence the setting of prices? Why would the prices of online brokerage firms differ so greatly from the prices of traditional brokerage firms? Include in your answer a discussion of the role of marginal cost and marginal revenue as it may apply to such companies.


Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Accounting

ISBN: 978-0618777181

8th Edition

Authors: Susan V. Crosson, Belverd E. Needles

Question Posted: