Apple Inc. (AAPL) Is Hurting Your Broker

Page 2 of 2

Since a client’s margin buying power is directly tied to the level of equity in the account, Apple Inc. (NASDAQ:AAPL)’s downturn has limited clients’ ability to borrow even more. If Apple had participated in the broader rally, margin investors would see buying power rise accordingly, and many of these traders would inevitably use that allowance. The same storyline is inevitably playing out at other discount brokers as well, since this situation isn’t unique to TD Ameritrade Holding Corp. (NYSE:AMTD).

Your broker is looking forward to Apple Inc. (NASDAQ:AAPL)’s recovery, especially if you’re a margin investor.

The article Apple Is Hurting Your Broker originally appeared on Fool.com.

Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends and owns shares of Apple and TD AMERITRADE.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2