More Money for Wall Street, Less for Investors

Matt Koppenheffer and David Hanson discuss a bill that may go before Congress that will reverse how stock prices are reported.

Currently, stocks are priced using decimals, rather than fractions like the good old days. This has led to very small spreads for trading companies dealing with stocks. The claim is, if we revert to fractions, at least for small-cap firms, this would increase the profit potential for small-cap companies -- more Wall Street brokers would research and promote these small stocks. And by virtue of such promotion, more investors would buy them and the companies would be able to grow their businesses and hire more people rather than languish with thinly traded stock offerings that really don't add meaningful funds for the company to use. Such is the claim of those contemplating a new bill that might go before Congress.

During the financial crisis, Goldman Sachs did so well pivoting to avoid the worst of the fallout that it had to downplay its success to duck public ire and conspiracy theories. Today, Goldman is still arguably the powerhouse global financial name, and yet its stock trades at a valuation of less than half what it fetched prior to the crisis. Does this make Goldman one of the best opportunities in the market today? To answer that question, I invite you to check out The Motley Fool's special report on the bank. In it, Fool banking expert Matt Koppenheffer uncovers the key issues facing Goldman, including three specific areas Goldman investors must watch. To get access to this report, just click here.

The article More Money for Wall Street, Less for Investors originally appeared on Fool.com.

David Hanson owns shares of Goldman Sachs. Matt Koppenheffer owns shares of Goldman Sachs. The Motley Fool recommends Goldman Sachs. The Motley Fool owns shares of Citigroup. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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


Increase your money and finance knowledge from home

What are Penny Stocks

The lucrative and dangerous world of penny stocks.

View Course »

Introduction to ETFs

The basics of Exchange Traded Funds and why ETFs are hot.

View Course »

Add a Comment

*0 / 3000 Character Maximum