Interactive Brokers Profits When Trading Is Hot. What Happens When It Cools?
The stock is flying high today on the back of the bull market.
Overview
Bull markets affect not only stock prices but also some underlying businesses in the economy. For instance, trading brokerages -- like Interactive Brokers (NASDAQ: IBKR) -- earn more revenue if more people around the globe trade their equities.
The bull market that began in late 2022 helped Interactive Brokers' stock generate a total return of over 525% in the last five years. That performance is actually crushing the performance of most technology and artificial intelligence (AI) stocks over the same time period.
Details
But what happens when trading eventually slows? Let's discuss the dynamics of the financial brokerage sector and what it could mean for Interactive Brokers investors today.
Source
Originally published at www.fool.com.