M.L. Stern Competition
Now Viewing M.L. Stern's competition in: Securities Brokers (primary)
Recent Developments
Financial Turmoil Causes Delays - The recent volatility in global stock markets caused US volume on the NYSE to set new records on September 19 and 20, 2008. The volume of shares traded on the 19th reached 10.3 billion shares, setting an overall volume record; the volume on the 20th set a new hourly record at the market's open. As a result, many brokerage customers and traders had trouble trading securities due to overloaded systems.
Online Brokerage Booming in Canada - Canadians are more willing than people in other countries to trade securities online. The result is that online trading products are rapidly evolving there. From June 2007 through June 2008, online trading volumes in Canada rose nearly 29 percent compared to the preceding 12 months, according to Investor Economics. Online brokerages are rushing to get more thorough and timely information to potential and active traders.
Controversy Over Brokers' Departure Ends in Canada - Brokers are valuable commodities to major investment banks, and successful brokers can be lured to rival banks. The Supreme Court of Canada recently ruled that employers must provide adequate notice when leaving, or they may face legal action. A case stemming from brokers who left RBC Dominion Securities for Merrill Lynch in Canada resulted in a $2 million judgment against the brokers because they hadn't given adequate notice.
Competitive Landscape
Demand is driven by the returns of securities markets relative to alternative investments. The profitability of individual companies depends on efficient operations and good marketing. Large companies have economies of scale in operations and high name recognition. Small companies can compete effectively by offering better customer service. The industry is highly automated: average annual revenue per worker is close to $300,000.
Securities Brokers Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US securities, commodity contracts, and investments, an indicator for securities brokers, is forecast to increase at an annual compounded rate of 4.1 percent between 2008 and 2013.
Securities, Commodities, and Investment Growth Level
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Baby boomers have more money
- Need good marketing
- Risk: Falling asset values reduce fees
Industries Where M.L. Stern Competes
- Financial Services
- Securities Brokers & Traders
- Retail Brokerages (primary)
- Investment Banking
- Investment Firms
- Shareholder Services
- Securities Brokers & Traders
